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.