Firm A and Firm B both produce the same product with the following total costs (TC): 
Consider the situation in which the market price is $15 and each of the two firms produces 2 units.
(A)Is the situation Pareto efficient? Explain.
(B)Suggest one different production allocation for the two firms that allows the 4 units of total output to be produced at a lower overall total cost.
(C)Would the outcome of your suggested production allocation maximize firm profits?
Definitions:
Semi-Annually
Occurring twice a year; a term often used in the context of paying interest or dividends.
Yield To Maturity
The total return anticipated on a bond if it is held until its maturity date, considering all interest payments and the principal repayment.
Par
The face value of a bond or other security, at which it can be redeemed at maturity or the amount of money equal in value to a particular share or bond.
Coupon
The yearly payment of interest to those holding bonds, represented as a percentage of the bond's nominal value.
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