I don't know. I don't usually think about that stuff
Answer: D. The government can use a tax to increase the marginal private cost of producing dry cleaning to equal the marginal social cost.
Explanation:
The Marginal Private Cost(MPC) is the cost that a company incurs per producing an additional good while Marginal Social Cost(MSC) is the cost incurred by the society (third parties) due to an additional good being produced. This includes marginal private costs as well.
The government should tax firms in such a way that they will see that MPC equal their MSC because this would ensure that they feel the full weight of the effects that their production is placing on the society. This will encourage them to produce at an efficient level that would reduce costs as much as possible especially MSCs.
Answer: Oligopoly
Explanation: In simple words, oligopoly refers to a market structure in which the market is dominated by small number of large buyers. The activities of one firm in such a market affects the other participants as well. Automobile industry is one of the many examples of oligopoly.
In the given case, the two producers are willing to share the market individually so that they can enjoy better amount of profits. Also they are arranging to set prices as per each others opinions so that no one looses.
Hence from the above we can conclude that the given case illustrates oligopoly.