The Rationale for Using Game Theory to Study Oligopoly Is

question 18

Multiple Choice

The rationale for using game theory to study oligopoly is that

• A) game theory is an exceedingly simple tool.
• B) each output produced by an oligopolist is determined by a linear program.
• C) it enables the government to dictate the outcome of a competitive situation.
• D) game theory allows consideration of the product transformation curve.
• E) in oligopoly, each firm must take account of its rivals' actions.

---

Definitions:

Cleaning Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession, often related to an excessive need for cleanliness and order.

Checking Compulsions

Repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, typically aimed at preventing some dreaded event or situation.

Mania

A mental state characterized by extremely elevated mood, energy, and activity levels, often associated with bipolar disorder.

Dissociative Fugue

A dissociative disorder in which one has a complete loss of memory of one’s entire identity, travels away from home, and may assume a new identity.