Q1. "1. At point E in figure 8.4b, is MP k/r greater or less than MP l/w? 2. Explain how do you know? 3. Use this inequality to Elucidate Explain how the firm can increase output without increasing its total cost by using a different combination of inputs.
Q2. Discuss Explain how "Game Theory" can be used to improve strategic decision making in competitive situations.
Q3. If the cubic total cost function described in the text applies to the production of output by a firm, and a=0, b=400, C=-50, D=5, Illustrate what are the equations for the firm's TFC, TVC, MC, AFC, AVC, and ATC?