Game Theory Is Necessary to Understand Which Kinds of Markets

question 284

Multiple Choice

Game theory is necessary to understand which kinds of markets?

• A)monopoly
• B)competitive
• C)oligopoly
• D)All of the above are correct.

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Definitions:

Tax

A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.

Consumer Surplus

The discrepancy between the amount consumers are prepared to spend on a product or service and the actual price they pay.

Consumer Surplus

The gulf between the aggregate amount consumers are willing to allocate for a good or service and what they actually end up paying.

Producer Surplus

The variance between the minimum amount producers are prepared to take for a product and the actual payment they get.