Question: SCENARIO answer this based on the information provided below: Two firms, Alpha and Beta, are the only competitors within the widget industry. They are located

SCENARIO answer this based on the information provided below:

Two firms, Alpha and Beta, are the only competitors within the widget industry. They are located in the same city. Fixed costs for Alpha and Beta are the same and Beta pays a labor rate of $20.00 per hour. Widgets are viewed as a commodity. The following is given: Alpha: L/Q = 5, P = 15, Quantity sold = 2 Beta: L/Q = 8, P = 15, Quantity sold = 2 Additionally, from the information above, it can also be stated that:

Group of answer choices

Beta will have higher profits

Both a and d above are correct

Alpha has a competitive advantage over Beta

Alphas TR cannot exceed $100.

Beta must have a higher marginal cost of production.

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