Hot Dog Vendors on the Beach Fail to Cooperate with One

question 365

Multiple Choice

Hot dog vendors on the beach fail to cooperate with one another on the quantity of hot dogs they should sell to earn monopoly profits. A consequence of their failure is that, relative to the outcome the vendors would like,
(i) the quantity of hot dogs supplied is closer to the socially optimal level.
(ii) the price of hot dogs is closer to marginal cost.
(iii) the hot dog market at the beach is less competitive.

• A)(i) and (ii)
• B)(ii) and (iii)
• C)(i) and (iii)
• D)(iii) only

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Definitions:

Three-Phase Circuit

An electrical circuit design that uses three alternating currents, each of which reaches its peak value at one third of a cycle from the other, to efficiently supply power.

Phase Values

Phase values pertain to the specific measurements or quantities that characterize each phase in a multiphase electrical system, such as voltage or current levels.

Pure Reactive Load

An electrical load that consumes reactive power only, with a power factor of zero, meaning it does not dissipate real power.

Three-Phase Load

An electrical load operating with three phases of alternating current, providing more consistent, balanced power delivery.