Decision Trees Are Commonly Used to Illustrate How Firms Make

question 146

Multiple Choice

Decision trees are commonly used to illustrate how firms make business decisions that depend on the actions of rival firms.A decision tree has boxes that contain points that represent when firms must make the decisions contained in the boxes.What are these points called?

• A)option points
• B)decision nodes
• C)either-or terminals
• D)decision options

---

Definitions:

Copper Electrical Wire

A type of wire made from copper used for conducting electricity, known for its high conductivity and flexibility.

International Copper Cartel

An agreement among some of the world's major copper-exporting countries to limit supply in order to maintain or increase copper prices.

Kinked-Demand Model

A model in oligopoly markets, suggesting that firms might face a demand curve that has a sharp bend or "kink" at the current price, leading to sticky prices.

Price Rigidity

The situation in which prices do not change quickly in response to changes in demand or supply, remaining static despite market pressures.