The depreciation tax shield is best defined as the:a. amount of tax that is saved because of the depreciation expense. b. amount of tax that is due when an asset is sold. c. tax that is avoided when an asset is sold as salvage. d. amount of tax that is saved when an asset is purchased. e. amount by which the aftertax depreciation expense lowers net income.

In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society? a. two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells.b. two airlines dominate air travel between city a and city b, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities.c. two superpowers decide whether to build new weapons or to disarm.d. in all of the above cases, the cooperative outcome of the game is good for the two players and bad for society