Answer:
1. Payoff matrix : Strategic form
2. Game tree format : Extensive form
3. A junction on a game tree : Decision nodes
4. One of the final outcomes of a game tree : Terminal nodes
5. Divides the overall game tree into nested subgames before working backward from right to left : Backward induction
6. A mini-game within the overall game : Subgame
7. The process of backward induction that relies on both firms having perfect information about the decisions made in each subgame : Nash equilibrium.
Explanation:
Payoff matrix is the technique for decision making where goals are dependent on interaction with others. Nash equilibrium is a strategy in which every firm tries to choose best possible outcome keeping in view the decisions of other firms.
Answer:
D. 2
Explanation:
The computation of the rate of lost demand is shown below;
Given that
p = 3
a = 4
M =2
Now
r = p ÷ a
=3 ÷ 4
= 0.75
Now determine the value from the erlang table having r = 0.75 and M = 2
= 0.123
Now,
The Rate of lost demand is
= demand rate × 0.123 × 60minutes
= (1 ÷ 4) × 0.123 × 60
= 1.845 or 2
= 2
Hence, the correct option is d.
Answer:
1, 12, and 13
Explanation:
As we know that
National income = NNP at FC
And,
GDP = GDP at MP
Now as we have to determine the GDP at MP from the national income so here considered the depreciation
So,
NNP at FC + depreciation expense -net factor income from abroad = GDP at FC
And, the statistical discrepancy is determined as gross domestic product subtract gross domestic income.
Hence, the above is the answer
Answer: The net effect of additional debt on WACC is uncertain.
Explanation:
Weighted Average Cost of Capital (WACC) refers to the rate of return that a company is paying it's capital providers on average be it debt holders or shareholders.
Adding additional debt to the mix effects the WACC in an uncertain way due to the different ways the WACC could react. For example, adding additional debt decreases the after-tax cost of debt because debt is tax deductible which means that more money can flow to shareholders so that reduces the cost of equity. At the same time however, Additional debt can increase the risk of bankruptcy meaning that the before tax cost of debt rises which also increase the WACC.
The effect can swing either way thereby making it uncertain.
Breakeven point in units=
Fixed cost÷[selling price-variable cost]
Breakeven point in units
=750÷(3.75−1.25)
=300 units
