Firm 1 Produces Output X with a Cost Function C₁(x)=

question 29

Multiple Choice

Firm 1 produces output x with a cost function c₁(x) = x² + 10.Firm 2 produces output y with a cost function c₂(y, x) = y² +x.Thus, the more that firm 1 produces, the greater are firm 2's costs.Both firms face competitive product markets.The competitive price of x is $20 and the competitive price of y is $40.No new firms can enter the industry and the old ones must remain.The efficient Pigouvian tax on the x good is

• A)$0.
• B)$1.
• C)$2.
• D)$3.
• E)$4.

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Definitions:

Employees Organizes

Likely refers to the action where workers unite or form unions to negotiate collectively with their employers over wages, hours, benefits, and other working conditions.

Organizational Architecture

The structure and systems in place within an organization that define how it operates and interacts.

Customer Type

Classification of customers based on certain characteristics, preferences, or purchasing behavior, used to tailor marketing or sales approaches.

Organizational Architecture

The structure and systems used by a firm to align its strategies with the behavior of its employees, comprising decision rights, rewards, and organizational boundaries.