Use the Information Below to Answer the Following Questions

question 72

Multiple Choice

Use the information below to answer the following questions.
Fact 14.2.1
Two firms,FastNet and SmartCast are the only Internet providers in a city.They have identical costs and one firm's service is a perfect substitute for the other firm's service.The industry is a natural duopoly.FastNet and SmartCast decide to collude and agree to share the market equally.
-Refer to Fact 14.2.1.What is the Nash equilibrium?

• A)Both firms cheat on the agreement.
• B)One firm cheats and one firm complies.
• C)Both firms comply with the agreement.
• D)New firms enter the market.
• E)Both firms charge the price that would exist in a perfectly competitive market.

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Definitions:

Endocrine Glands

Organs that secrete hormones directly into the bloodstream to regulate various body functions, including growth, metabolism, and mood.

Acetylcholine Antagonists

Acetylcholine antagonists are substances or drugs that inhibit the action of acetylcholine, a neurotransmitter involved in various functions including muscle movement and memory.

Somatic Nervous System

The part of the peripheral nervous system that handles voluntary control of body movements through control of skeletal muscles.

Autonomic Nervous

It refers to the part of the nervous system responsible for control of bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.