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.

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Definitions:

Andragogy

The art and science of helping adults learn, differing from pedagogy, which focuses on the education of children.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that individuals have different kinds of intelligences, including linguistic, logical-mathematical, musical, bodily-kinesthetic, spatial, interpersonal, and intrapersonal.

Behaviorism

A theory of learning that focuses on observable behaviors and suggests that all behaviors are acquired through conditioning processes without considering thoughts or feelings.

Behavioral Objectives

These are specific, measurable goals that describe the desired behavior outcomes of learning or intervention.