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Camille and Rosa have decided to open a business together. Which of the following is true for their business?

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Final answer:

When Camille and Rosa open a business together, they should consider structuring their partnership to enable profitable coordination, making their business more lucrative. Similar to examples in the reference materials, their success will depend on trust and cooperation to avoid situations like the prisoner's dilemma, ensuring mutually beneficial outcomes.

Step-by-step explanation:

When Camille and Rosa decide to open a business together, they will need to consider how to structure their partnership in a way that allows for effective coordination and profit maximization. As indicated, cooperation in business ventures can lead to incentives that promote higher returns, and successful coordination between business partners can result in a lucrative outcome. Looking at the references provided, we see a context where other business operators, like factory owners or farmers, find it beneficial to coordinate to increase profitability. If Camille and Rosa can find an equally easy and profitable way to coordinate their business, they will have a strong incentive to do so. This is similar to Mary and Raj's situation, where their cooperation in producing less corn could elevate the price and increase their earnings compared to working independently.

However, this scenario bears the risk of the prisoner's dilemma, where mutual trust is vital. If both parties trust each other to cooperate fully and not work independently for individual gain at the expense of the other, coordination can lead to higher profitability. Otherwise, if there's doubt, the risk of one party cheating may lead to both parties choosing to work independently to safeguard their interests.