Author Question: Refer to the scenario above. The sum of the firms' payoffs is maximum when ________. A) both the ... (Read 31 times)

joesmith1212 · **on:** Jun 29, 2018

Refer to the scenario above. The sum of the firms' payoffs is maximum when ________.

A) both the firms choose Strategy X
B) both the firms choose Strategy Y
C) Firm A chooses Strategy X, and Firm B chooses Strategy Y
D) Firm A chooses Strategy Y, and Firm B chooses Strategy X

Question 2

The marginal social cost curve ________ when production involves negative externalities.

A) is parallel to the horizontal axis
B) is parallel to the demand curve
C) lies above the supply curve
D) lies to the right of the supply curve