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

question 7

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

-The existence of externalities in a market implies that:

• A)resources are being used efficiently.
• B)there is no other allocation of resources that would make society as a whole better off.
• C)consumers cannot be excluded from consuming the good once it is provided.
• D)resources are not being used in their highest valued activity.
• E)the social welfare is maximized.

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Definitions:

Eco-Friendly Products

Goods produced in a way that is not harmful to the environment, often made with sustainable practices and materials.

Existing Laws

The current and operative legal rules and regulations enacted by governing bodies that individuals and entities must comply with.

Entrance Strategies

Plans or approaches developed by businesses or organizations to enter into new markets or territories.

Collaborative Initiatives

Joint efforts by two or more parties, often involving partnerships between organizations to achieve common goals.