Refer to the scenario above. What is the equilibrium outcome in this case?
A) Both firms will dump their waste into the river.
B) Neither of the firms will dump its waste into the river.
C) Firm 1 will dump its waste into the river, while Firm 2 will not dump its waste.
D) Firm 2 will dump its waste into the river, while Firm 1 will not dump its waste.
A
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Sam's Semiconductors produces computer chips, which it sells for $10 million to Carl's Computer Company (CCC). CCC's computers are sold for a total of $16 million. What is the value added of CCC?
A) $6 million B) $10 million C) $16 million D) $26 million
If a firm chooses to produce output at the point where MR equals MC,
a. then TR - TC will be maximized if there is a profit b. economic profits will be zero c. there will be positive accounting profits d. there will be positive economic profits e. average cost must equal average revenue