Firm 1 Produces Output X with a Cost Function C₁(x)=

question 29

Multiple Choice

Firm 1 produces output x with a cost function c₁(x) = x² + 10.Firm 2 produces output y with a cost function c₂(y, x) = y² +x.Thus, the more that firm 1 produces, the greater are firm 2's costs.Both firms face competitive product markets.The competitive price of x is $20 and the competitive price of y is $40.No new firms can enter the industry and the old ones must remain.The efficient Pigouvian tax on the x good is

• A)$0.
• B)$1.
• C)$2.
• D)$3.
• E)$4.

---

Definitions:

Youngest Layer

the most recent geological layer, usually found at the top of a sequence in stratigraphy.

Oldest Layer

Pertains to the earliest or first-formed layer of sediment or rock in a sequence, indicating the earliest period of deposition.

Numbered Units

Quantitative values assigned to items or units in order to denote quantity, order, or position.

Youngest

This term relates to the latest or most recently developed strata or earth materials in geological studies.