Multiple Choice
Externalities between two firms can be "internalized" if:
I.The two firms merge.
II.Bargaining costs are zero.
III.The externalities affect each firm equally.
IV.Marginal costs for both firms are constant.
Which statement(s) correctly complete the sentence?
A) Only II
B) All except III
C) I and II,but not III and IV
D) I and IV,but not II and III
Correct Answer:
Verified
Correct Answer:
Verified
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