Suppose That Firms a and B Each Produce High-Resolution Computer

question 157

Multiple Choice

Suppose that Firms A and B each produce high-resolution computer monitors, but Firm A can do so at a lower cost. Cassie and David each want to purchase a high-resolution computer monitor, but David is willing to pay more than Cassie. Which of the following market outcomes is efficient?

• A)Firm A produces a monitor that Cassie buys. David does not purchase a monitor.
• B)Firm A produces a monitor that David buys.
• C)Firm B produces a monitor that Cassie buys. David does not purchase a monitor.
• D)Firm B produces a monitor that David buys.

---

Definitions:

Percentage Increments

Measurements or steps of increase that are calculated as a fraction of a hundred, often used in financial and statistical contexts.

Gradient Fill

A type of fill pattern that smoothly transitions between colors across a surface or shape.

Same Color

Refers to items or elements that share the identical hue, tint, shade, or overall visual appearance.

Shapes Gallery

A collection of ready-made shapes like circles, rectangles, and arrows that users can insert and use in documents and presentations in various software applications.