If an industry consists of only two firms with equal market shares, then the Herfindahl index is

Refer to the table above. If the rental price of machines is $40 per day, up to how many machines should the firm rent to maximize profits?

A) 2 B) 4 C) 6 D) 7

Positive incentives do not: a. increase benefits

b. result in an increased level of the related activity. c. reduce costs. d. discourage consumption.