-The Above Figure Shows the Reaction Functions for Two Pizza

question 30

Multiple Choice

-The above figure shows the reaction functions for two pizza shops in a small isolated town.Firm B producing 100 pizzas and firm A producing 50 pizzas is not a Cournot equilibrium because

• A) Cournot duopolists agree to share the market equally.
• B) firm B is not on its best-response function.
• C) firm A is not on its best-response function.
• D) neither firm is on its best-response function.

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The national government of a federal state, which holds sovereignty over broad aspects of governance, such as defense, foreign affairs, and monetary policy.

Payroll Taxes

Taxes imposed on employers and employees, based on the wages and salaries paid to workers, used to fund social security and healthcare services.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often resulting from industrial activity, where the negative effects are felt by others, such as pollution.

Public Good

A product that is non-excludable and non-rivalrous, meaning it can be used by many simultaneously without diminishing the product's availability to others.