Loud music from a neighbor's party is A) a negative ...

[Shelles]

Loud music from a neighbor's party is
 
  A) a negative externality whether or not you like it.
  B) a positive externality whether or not you like it.
  C) a positive externality if you like the music, and a negative externality if you don't.
  D) a negative externality if you like the music, and a positive externality if you don't.
  E) not an externality.

Question 2

Is there a first-mover advantage in the Bertrand duopoly model with homogenous products?
 
  A) Yes, first-movers always hold the advantage over other firms.
  B) Yes, first-movers may have an advantage, but it depends on the model assumptions.
  C) No, first-movers cannot choose a profit maximizing quantity because the second-mover can always produce a bit less and earn higher profits.
  D) No, the second-mover would be able to set a slightly lower price and capture the full market share.

[nhea]

Answer to Question 1

C

Answer to Question 2

D