please add some explanation

Two soft-drink firms, Fizzle & Sizzle, operate on a river. Fizzle is farther upstream, and gets cleaner water, so its cost of purifying water for use in the soft drinks is lower than Sizzle's by $500,000 yearly.

2- According to the Scenario above, Fizzle and Sizzle:CHOOSE & SHOW THE STEPS or EXPLAIN (5 points)

A) would be perfectly competitive if their purification costs were equal; otherwise, not.

B) would be perfectly competitive if it costs Fizzle $500,000 yearly to keep that land.

C) may or may not be perfect competitors, but their position on the river has nothing to do with it.

D) cannot be perfect competitors because they are not identical firms.

Answer:

3) Refer to the information in Scenario above.If Fizzle and Sizzle sell the same output at the same price and are otherwise identical, Fizzle's profit will be: CHOOSE & SHOW THE STEPS or EXPLAIN (5 points)

A) higher than Sizzle's by $500,000 yearly.

B) higher than Sizzle's by just less than $500,000 yearly.

C) zero in the long run, and Sizzle will be out of business.

D) the same as Sizzle's because Fizzle must be assigned an implicit cost of $500,000 yearly for economic rent.

E) the same as Sizzle's because Sizzle will move to a more advantageous location in order to compete.