Externalities are consequences visited upon those individuals residing outside decision processes

The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received. In the Nash equilibrium of this game:

A. both candidates run negative campaigns. B. one candidate runs a positive campaign, and the other runs a negative campaign. C. as long as one party runs a positive campaign, the other does too. D. both candidates run positive campaigns.

2A fixed cost is

A. a cost the firm must pay even if output is zero. B. a cost which increases in a fixed proportion as output increases. C. the cost of any input with a fixed price per unit. D. both b and c E. all of the above