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

Question 29

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 existence of positive externalities in the consumption of a good implies that:​ A) ​the social supply curve of the good lies to the right of the private supply curve. B) ​the government will need to provide subsidies to ensure a socially efficient level of consumption. C) ​the socially efficient quantity of the good will be less than the market equilibrium quantity. D) ​the good generates an external cost. E) ​the market equilibrium price of the good will be greater than the social equilibrium price.
-The existence of positive externalities in the consumption of a good implies that:​


A) ​the social supply curve of the good lies to the right of the private supply curve.
B) ​the government will need to provide subsidies to ensure a socially efficient level of consumption.
C) ​the socially efficient quantity of the good will be less than the market equilibrium quantity.
D) ​the good generates an external cost.
E) ​the market equilibrium price of the good will be greater than the social equilibrium price.

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