Externalities Between Two Firms Can Be "Internalized" If

question 6

Multiple Choice

Externalities between two firms can be "internalized" if:
I.The two firms merge.
II.Bargaining costs are zero.
III.The externalities affect each firm equally.
IV.Marginal costs for both firms are constant.
Which statement(s) correctly complete the sentence?

• A)Only II
• B)All except III
• C)I and II,but not III and IV
• D)I and IV,but not II and III

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Definitions:

Mediator Behaviors

The actions and strategies employed by a neutral third party to facilitate conflict resolution and agreement between disputing parties.

Mediation Success

The achievement of resolving a dispute or conflict through the intervention of a third party, leading to a mutually acceptable agreement.

Conflict Costs

The expenses, both tangible and intangible, that arise from disputes and disagreements.

Process Consultation Objective

The goal of helping an organization improve its internal processes and effectiveness through expert advice without taking direct control.