Economists Use Game Theory to Analyse Strategic Behaviour, Which Takes

question 19

Multiple Choice

Economists use game theory to analyse strategic behaviour, which takes into account

• A) the expected behaviour of others and the recognition of mutual interdependence.
• B) that increased demand decreases the market power of the firms in the market.
• C) the price-taking behaviour of oligopolists.
• D) non-price competition.
• E) monopoly situations.

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Definitions:

Difference Threshold

The minimum difference between two stimuli required for detection 50 percent of the time. We experience the difference threshold as a just noticeable difference (or jnd).

Guitar

A stringed musical instrument with a long fretted neck, a flat wooden soundboard, and typically six strings, which are plucked or strummed.

Detecting

The process or act of discovering or identifying the presence of something concealed or unknown.

Subliminally

The process of affecting someone's mind without them being fully aware of it, typically regarding the perception of stimuli.