Suppose That Firms a and B Each Produce High-Resolution Computer

question 374

Multiple Choice

Suppose that Firms A and B each produce high-resolution computer monitors, but Firm A can do so at a lower cost. Cassie and David each want to purchase a high-resolution computer monitor, but David is willing to pay more than Cassie. If Firm A produces a monitor that Cassie buys but David does not, then the market outcome illustrates which of the following principles?

• A) (i) only
• B) (ii) only
• C) both (i) and (ii)
• D) neither (i) nor (ii)

---

Definitions:

Regulations

Rules or directives made and maintained by an authority to regulate behavior, ensuring standards are met within industries, communities, or systems.

Concentration of Effect

The degree to which outcomes are focused and intense in a specific area or aspect.

Moral Intelligence

The capacity to understand right from wrong, make ethical decisions, and demonstrate integrity in one’s actions and judgments.

Law and Order Principles

Core beliefs or guidelines that emphasize strict adherence to laws and the enforcement of public order.