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:

International Sales

Revenue generated from the sale of products or services outside of the company's home country.

Bankers' Acceptance

A short-term debt instrument issued by a company but guaranteed by a bank, often used in international trade.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, issued by banks to individuals investing money for a fixed period of time.

Tax Bracket

Categories that tax rates apply to, which are based on levels of income; each bracket has a different tax rate associated with it.