External benefits in consumption refer to benefits accruing to Multiple Choice O O those who are selling the product to the consumers. those who bought and consumed the product. those other than the ones who consumed the product. those who are consuming the product abroad. Government can use its ability to coerce toward improving economic efficiency byl Multiple Choice O reducing the production of output with external benefits. reducing the production of output with public-goods characteristics. increasing the production of output with external benefits. increasing the production of output with external costs. Answer the question based on the payoff matrices for a repeated game involving two firms that are considering introducing new products to the market. The numbers indicate the profit from following either a strategy to introduce a new product or a strategy to not introduce a new product. First game. Firm B's Strategies Don't Introduce New Product Introduce New Product Introduce New Product A= $12M B$12M A = $8M Firm A's Strategies B = $16M Don't Introduce New Product A= $16M B= $8M A = $10M B = $10M 4 Second game. Firm B's Strategies Don't Introduce New Product Introduce New Product Introduce New Product A = $13M B = $13M A = $10M Firm A's Strategies B = $16M Don't Introduce New Product A = $16M B = $10M A = $11M B=$11M D In the first game, if firm B doesn't introduce a new product and firm A does, then firm A would be better off if Multiple Choice O both firms introduce new products in game 2. neither firm introduces new products in game 2. firm B reciprocates in game 2. game 2 reaches a Nash equilibrium.