When Firms Are Faced with Making Strategic Choices to Maximize

question 351

Multiple Choice

When firms are faced with making strategic choices to maximize profit, economists typically use

• A)the theory of monopoly to model their behavior.
• B)the theory of aggressive competition to model their behavior.
• C)game theory to model their behavior.
• D)cartel theory to model their behavior.

---

Definitions:

Pseudopenis

A clitoris that is significantly enlarged to resemble a penis, found in certain species such as the spotted hyena.

Non-adaptive

Referring to traits or behaviors that do not provide a survival or reproductive advantage to an organism.

Variable Life Insurance

A type of insurance policy that does not allow for the premium or minimum coverage on one’s life to change but allows one to switch the savings from among money markets or various forms of stock.

Universal Life Insurance

A type of insurance policy that is flexible and allows one to raise or reduce premiums and the amount of coverage on one’s life.