In chicken game, the worst possible outcome occurs when both players play their tough strategy

To maximize profit, a perfectly competitive firm

A) should sell the quantity of output determined by the interaction between industry demand and supply. B) should produce the quantity of output that results in the greatest difference between marginal revenue and marginal cost. C) should sell the quantity of output that results in a value for total revenue that is equal to total cost. D) should produce the quantity of output that results in the greatest difference between total revenue and total cost.

The welfare analysis of advertising is controversial because evaluation of the effect of advertising on aggregate surplus depends on:

A. the marginal cost of the advertising. B. whether the inframarginal consumer is influenced by the advertising. C. whether the advertising is tied to a quality increase. D. the reason it succeeds in increasing demand.