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Tag Archives | Firm

Evaluating the Investment Decisions of a Firm | Economics

An entrepreneur adopts the various methods of evaluating the investment while making the decision. These methods can be classified into two major categories: (i) Traditional Investment Approaches. (ii) Modern Investment Approaches. Traditional Investment Approaches: The traditional methods of investment evaluation are based on three main assumptions: (a) The profit making is the only objective of […]

Investment Decision and Size of the Firm | Economics

Problem of decision making for investment is closely related with the size of firm, and maximisation of profit. What should be the optimum size of the firm is problem with which our present day industry is faced. A.G. Robinson while discussing optimum size of the firm has said that “It is a firm in which […]

Nash Equilibrium Strategies of Game Theory | Microeconomics

The definition of Nash equilibrium lacks the ∀ s-i” of dominant strategy equilibrium. The Nash equilibrium strategy need only be a best response to the other Nash strategies not to all possible strategies. Although, we deal with best responses and the moves are actually simultaneous. Therefore the players are predicting each other moves. The Battle […]

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