Suppose there are two breakfast restaurants in your college town, waffle kingdom and flip’s flapjacks, and they decide to operate collusively as a cartel. if both restaurants abide by the cartel’s agreement, then each will earn $100,000 in profit. if both restaurants cheat on the cartel’s agreement, then each will earn $25,000 in profit. if one restaurant cheats and the other abides by the agreement, then the cheater will earn a profit of $150,000 while the firm that abides will have a loss of $12,500.1 the most profitable combined outcome for the two restaurants would bea. for both restaurants to abide by the cartel’s agreement. b. for both restaurants to cheat on the cartel’s agreement. c. for waffle kingdom to cheat on the agreement and flip’s flapjacks to abide by the agreement. d. there is not a profitable outcome for both restaurants

After discussing the options, the strategic management team has agreed that the pod coffee idea works well with the company's mission statement and decides that the company should move forward in exploring the pod coffee idea. in order to make sure that the pod coffee idea is a good one, and to see if there are other potential future endeavors to pursue, you must analyze the market situation and formulate a strategy. your boss asks you to start working on the pod coffee idea. what is your first stepa. your first step is to formulate a strategy for how to market the pod coffee concept. b. your first step is to consult with your boss and find out what he thinks about the pod coffee idea. c. your first step is to do some research to find out what your competitors are doing. d. your first step is to analyze the organization's strengths, weaknesses, opportunities, and threats.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Dan wants to start a supermarket in his hometown, and wants to get into the business only after finding out about the market and how successful his business might be. the best way for dan to gain knowledge is to: