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

question 6

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 positive externalities in the consumption of a good implies that:​

• A)​the social supply curve of the good lies to the right of the private supply curve.
• B)​the government will need to provide subsidies to ensure a socially efficient level of consumption.
• C)​the socially efficient quantity of the good will be less than the market equilibrium quantity.
• D)​the good generates an external cost.
• E)​the market equilibrium price of the good will be greater than the social equilibrium price.

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Definitions:

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain relatively constant regardless of the levels of production.

Variable Costs

Expenses that fluctuate with production volume, such as raw materials, direct labor, and certain utilities.

Special Equipment

Equipment that is not standard issue and is designed or selected for a specific task or environment.

Beet Fiber

A byproduct of sugar beet processing that is used as a dietary fiber supplement or in the production of biodegradable products.