Author Question: Firms make a profit when they equate marginal revenue with marginal cost. Indicate whether the ... (Read 65 times)

bobypop · **on:** Jun 30, 2018

Firms make a profit when they equate marginal revenue with marginal cost.
Indicate whether the statement is true or false

Question 2

Assume that the characteristic functions for individuals 1,2, and 3 are given by V(1) = 20, V(2) = 16, and V(3) = 10 respectively, and value created by the coalition V(1,2,3) = 60 . If the payoff to individual 1 is 30, and that to individuals 2 and 3 is 15 each, which of the following statements is true?
a. The given allocation is within the core.
b. 2 and 3 will withdraw from the coalition.
c. 2 will block the imputation.
d. This allocation is individually rational for all.