Externalities Between Two Firms Can Be "Internalized" If: Which Statement(s)correctly

question 12

Multiple Choice

Externalities between two firms can be "internalized" if: Which statement(s) correctly complete(s) the sentence?
I.The two firms merge.
II.Bargaining costs are zero.
III.The externalities affect each firm equally.
IV.Marginal costs for both firms are constant.

• A)Only II.
• B)All except III.
• C)I and II,but not III and IV.
• D)I and IV,but not II and III

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Definitions:

Skeletal Muscle Tissue

A type of muscle tissue that is attached to bones and is responsible for voluntary movements of the body.

Smooth Muscle Tissue

A type of muscle tissue found in the walls of hollow organs like the intestines and blood vessels, which contracts involuntarily.

Motor Unit

A single motor neuron and all the muscle fibers it innervates, working together to perform muscular contraction.

Skeletal Muscle Tissue

A type of muscle tissue that is attached to bones and responsible for voluntary movements.