Final answer:
If Jack steals the $30 from Sally at Taco Bell, the money is considered stolen and not Taco Bell's income, resulting in potential disciplinary actions against Jack. This situation reflects the importance of trust and cooperation in economics and business, similar to how firms in a cartel must trust each other to stick to agreed-upon output levels to maintain profits.
Step-by-step explanation:
When Sally drives to a Taco Bell drive-thru and hands Jack, an employee acting as an agent of Taco Bell, $30, Taco Bell has a gross income of $30. However, if Jack steals the $30, this action constitutes theft, and Taco Bell does not actually receive the income. The $30 is no longer part of Taco Bell's gross income or revenue but is an illegal gain for Jack. Taco Bell would likely take steps to rectify the situation, including disciplining or terminating Jack's employment, and may involve law enforcement if necessary.
In the broader context of economics and business, trust and cooperation are key elements in transactions and agreements. In a cartel, firms may agree to cooperate to control output and maintain prices at a high level. However, when trust is violated—as would be the case in a cartel member producing more than agreed or an employee stealing—negative consequences arise. The party who broke the trust would initially benefit, but the overall outcome can lead to distrust, instability, and eventually lower profits or legal penalties for all parties involved.
An example of this kind of trust issue can be seen in how firms in a cartel could potentially behave. If Firm A expects Firm B to cooperate by holding down output, Firm A could seize the opportunity to increase profits by raising its own output. Conversely, if Firm A expects Firm B to cheat and increase output, Firm A is likely to increase output as well to avoid making a lower profit. This situation reflects the strategic decision-making processes in game theory, where the actions of one party are heavily influenced by the expectations of another's behavior.