Suppose That Firms a and B Each Produce High-Resolution Computer

Multiple Choice

Suppose that Firms A and B each produce high-resolution computer monitors, but Firm A can do so at a lower cost. Cassie and David each want to purchase a high-resolution computer monitor, but David is willing to pay more than Cassie. Which of the following market outcomes is efficient?

A) Firm A produces a monitor that Cassie buys. David does not purchase a monitor.
B) Firm A produces a monitor that David buys.
C) Firm B produces a monitor that Cassie buys. David does not purchase a monitor.
D) Firm B produces a monitor that David buys.