Discuss the source of tension between cooperation

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Q. The Norfolk Bank has $18,000 in excess reserves and the reserve ratio is 20 percent. Which level of checkable deposits and reserves might this bank hold?

Q. Discuss the source of tension between cooperation and self-interest in a market characterized by oligopoly. Use an example of an actual cartel arrangement to demonstrate why this tension creates instability in cartels.

Reference no: EM1360789

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