The Difference Between an Extensive-Form Game and a Simultaneous-Move Game

question 44

Multiple Choice

The difference between an extensive-form game and a simultaneous-move game is that ________.

• A) simultaneous-move games have two players, but extensive-form games can have more than two players
• B) simultaneous-move games have zero-sum payoffs, but extensive-form games do not
• C) in extensive-form games the player can observe the other player's action before deciding, but in simultaneous-move they can't
• D) in simultaneous-more games players have only two actions to choose from, but in extensive-form games the players can have more than two choices

---

Definitions:

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Pure Monopolist

A market structure in which a single company or entity exclusively controls the entire supply of a particular good or service, without any close substitutes.

Pure Competitor

A firm in a market where there are many sellers and buyers of a standardized product and no single entity can influence the market price.

Herfindahl Index

An economic measure used to calculate the concentration of market power within industries, considering the sizes of all firms in the market.