Which of the following best describes the reason why game theory is useful for analyzing oligopoly behavior? Game theory does not account for the strategics of other firms, so it omits information that is not necessary to analyze oligopoly behavior. A market with only two suppliers cannot be demonstrated with a traditional supply and demand model. Oligopolies have no costs to produce their goods, so there is never a supply curve for an oligopoly. In an oligopoly, firms act strategically to increase their market share at the expense of their competitors' market share. Firms view the ability to beat their rivals as a game to be played and won, regardless of the profit that they have at the end of the game.

Which of the following best describes the reason why game theory is useful for analyzing oligopoly behavior? Game theory does not account for the strategics of other firms, so it omits information that is not necessary to analyze oligopoly behavior. A market with only two suppliers cannot be demonstrated with a traditional supply and demand model. Oligopolies have no costs to produce their goods, so there is never a supply curve for an oligopoly. In an oligopoly, firms act strategically to increase their market share at the expense of their competitors' market share. Firms view the ability to beat their rivals as a game to be played and won, regardless of the profit that they have at the end of the game.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the model of oligopoly, there: are many firms producing undifferentiated products. is one firm producing a highly differentiated product. is one firm producing undifferentiated products. are a few firms producing differentiated or undifferentiated products. are many firms producing differentiated products.
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O Cell A O Cell C O Cell E O Cell I None of the above
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