Economists Use Game Theory to Analyse Oligopolies Because

question 10

Multiple Choice

Economists use game theory to analyse oligopolies because

• A)real markets are too complicated to analyse without using games.
• B)it is more enjoyable for economists and students to learn by playing games.
• C)game theory helps us to understand why interactions among firms are crucial in determining profitable business strategies.
• D)game theory is useful in understanding the actions of firms that are price takers.

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Definitions:

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A legal principle or rule established in a previous court case that is either binding on or persuasive for a court when deciding subsequent cases with similar issues or facts.

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