A tax is sometimes used by government to correct the problems associated with

A firm that maximizes its profits by producing a certain level of output must also:

a) maximize its revenue. b) minimize its variable costs. c) maximize its output d) maximize its sales. e) minimize its cost of producing that output.

A Nash equilibrium occurs when

A) each firm is doing the best it can given its opponents' actions. B) each firm chooses the strategy that maximizes its minimum gain. C) a player can choose a strategy that is optimal regardless of its rivals' actions. D) there is no dominant firm in a market.