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

question 44

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

-Which of the following is an example of a positive externality?

• A)Smoking a cigarette
• B)Driving a less fuel efficient vehicle
• C)Setting up a chemicals factory in a residential area
• D)Overuse of chemical fertilizers
• E)Beekeepers keeping bees for honey

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Definitions:

Informational

Pertaining to the dissemination or exchange of knowledge, data, or facts.

Autokinetic Effect

Illusion, caused by very slight movements of the eye, that a stationary point of light in a dark room is moving

Group Norms

The beliefs or behaviors that a group of people accepts as normal.

Normative Conformity

The tendency to behave in ways that are in line with the group's norms or expectations in order to fit in or gain approval.