The above figure shows the payoff matrix for two firms, A and B, selecting an advertising budget. The firms must choose between a high advertising budget and a low advertising budget. A Nash equilibrium is that

According to Garrett Hardin's view of The Tragedy of the Commons:

a. Externalities will be internalized by the market. b. Individuals will use the commons up to the point where marginal benefits equal marginal social costs. c. Individuals will create institutions to prevent the collapse of the commons. d. Individual will use the commons beyond the socially efficient point.

A pollution tax that is exactly equal to marginal external cost will shift the market supply curve to the social-cost supply curve. This tax will thus correct the market inefficiency due to negative externalities by causing price to reflect the full marginal cost of production

a. True b. False Indicate whether the statement is true or false