The Use of Game Theory in Studying the Behavior of Firms

question 176

Multiple Choice

The use of game theory in studying the behavior of firms in an oligopoly implies that firms _____

• A)will be successful in colluding to raise prices.
• B)follow suit when one firm raises its price.
• C)will match other firms' price cuts but will not react to the other firm's price increases.
• D)may attempt to avoid the worst outcome but may achieve a less-than-optimal outcome.
• E)are usually unable to avoid the worst outcome.

Acknowledge the potential resistance to change within organizations and understand strategies to manage it.

Understand the role of stages in models of organizational change, like Lewin's Force Field Analysis and appreciative inquiry.

Recognize the impact of organizational systems on change efforts and how they can both facilitate and hinder change.

Understand the concept and value of future search conferences in facilitating organizational change.

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Definitions:

Economic Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off.

Water Use

The act of utilizing water resources for various purposes such as drinking, agriculture, industry, hygiene, and recreational activities.

Per Capita Real GDP

An economic measure that represents the inflation-adjusted gross domestic product divided by the total population, indicating the average economic output per person.

Per Capita Trash

Per Capita Trash is the average amount of waste generated by each person in a specified area within a given period of time.