The Formal Game Theory Model Assumes That

question 74

Multiple Choice

The formal game theory model assumes that:

• A) markets are contestable when no barriers to entry exist.
• B) the dominant firm in the industry will set product price and other firms will follow.
• C) each player tries to anticipate the reaction of his or her rivals when making a decision.
• D) each player ignores the possible reaction of his or her rivals when making a decision.

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