The Table Below Shows the Payoff (Profit) Matrix of Firm

question 4

Multiple Choice

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms) .Table 12.2

-Why do market failures arise in case of public goods?

• A)The quantity produced is much more than is actually required by the people.
• B)The quality of these goods is not good enough.
• C)The quantity produced is too less from the society's point of view.
• D)The government wastes a lot of resources for producing a public good.
• E)The users of such goods are required to pay a high price for these goods.

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Definitions:

Front Office Orientation

Refers to a business approach focused on direct interaction with the customers, emphasizing customer service and satisfaction as key to success.

Chargeout Rates

The rates charged to clients for services, often reflecting labor, overheads, and a margin for profit, used by consultancy and service-based businesses.

Billable Hour

The amount of time spent on a specific client's project that can be charged to that client, commonly used in legal and consulting services.

Realisation Rate

The percentage of billable hours or the revenue earned out of the total available hours or potential revenue, often used to measure the efficiency and profitability of professional services.