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

question 71

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

-When the social costs of producing or consuming a good exceed the private costs, _____.

• A)a positive externality exists
• B)an inefficiently high quantity of the good will be produced and consumed, from the society's point of view
• C)the direct consumers of the good will bear the external costs
• D)the individuals involved in the production of the good do not bear the private costs
• E)the quantity of the good produced will be less than the socially efficient level

---

Definitions:

Fetal Alcohol Spectrum Disorders

A group of conditions occurring in individuals whose mothers consumed alcohol during pregnancy, causing a range of physical, behavioral, and learning problems.

School-Age Children

Children typically aged between 6 to 12 years, representing the period of formal education from kindergarten through elementary school.

Caffeine

A central nervous system stimulant found in coffee, tea, chocolate, and certain medications, known for enhancing alertness and reducing feelings of tiredness.

Aspirin

A commonly used medication to reduce pain, inflammation, and fever, and in low doses, to prevent blood clots.