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The Table Below Shows the Payoff (Profit) Matrix of Firm

Question 17

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
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    -The free rider problem occurs because: A) it is easy to exclude others from consuming a good. B) consumption is rivalrous, so the consumption of a product by one individual diminishes the amount available for others. C) exclusion is costly or impossible, so a consumer or producer can use a good without having to pay for it. D) external costs are imposed on others not directly involved in the transaction. E) individuals are not required to pay for those goods which do not yield any utility to them.
-The free rider problem occurs because:


A) it is easy to exclude others from consuming a good.
B) consumption is rivalrous, so the consumption of a product by one individual diminishes the amount available for others.
C) exclusion is costly or impossible, so a consumer or producer can use a good without having to pay for it.
D) external costs are imposed on others not directly involved in the transaction.
E) individuals are not required to pay for those goods which do not yield any utility to them.

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