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. If Firm B produces a monitor that David buys, then the market outcome illustrates which of the following principles?
A) (i) only
B) (ii) only
C) both (i) and (ii)
D) neither (i) nor (ii)

Question

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The Answer of 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. If Firm B produces a monitor that David buys, then the market outcome illustrates which of the following principles?
A) (i) only
B) (ii) only
C) both (i) and (ii)
D) neither (i) nor (ii)

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