How to find optimal row and optimal column in a
nonstrictly determined game explain with at least 2 examples (one
must be at least 3x3 matrix) and how to find the value (in a
determined game, I remember, the value is the saddle value). will
rate positive if u make the cut.
Discuss how the optimal capital structure is determined (i.e.,
what variable(s) suggest that a level of debt is optimal). Discuss
the pros and cons of adding debt to a zero or low debt firm.
If the market equilibrium quantity is greater than the socially
optimal quantity, one can infer that:
Select one:
a. the private marginal benefits of the activity are less than
the marginal social benefits.
b. the production of this good has a positive externality.
c. the production of this good has a negative externality.
d. the private marginal costs for the activity are greater than
the marginal social costs of the activity.
Using an appropriate diagram, carefully explain why a natural
monopoly cannot sell the socially optimal quantity of output at a
single price. Also, explain how second-degree price discrimination
can allow for optimal output without the need to subsidize the
firm. Be sure to identify total revenue.
1. An activity’s marginal benefit is ________ at the
optimal quantity.
a. zero
b. less than zero
c. greater than the marginal cost
d. greater than zero
e. equal to the marginal cost
2. Over the long run, a monopolist
a. can continue to make economic profits if it can maintain a
monopoly and keep competitors from entering the market.
b. cannot continue to make profits and will earn a loss.
c. will not make...