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.

---

Definitions:

Primitive

Basic data types provided by a programming language as building blocks for more complex data types.

Executable Statements

Instructions in a program that perform actions, such as assigning values, calling functions, or looping through data.

Assignment

Assignment in programming is the act of setting a value to a variable or an object attribute.

Arithmetic

The branch of mathematics dealing with numbers and operations such as addition, subtraction, multiplication, and division.