Question

question 10 (2 points) ✓ saved
which of the following scenarios can be analyzed using game theory?
○ a) a firms internal decision - making process.
○ b) price - setting behavior in an oligopoly.
○ c) natural monopolies.

Explanation:

Game theory analyzes strategic interactions among rational decision - makers. In an oligopoly, firms are interdependent. Their price - setting decisions affect and are affected by competitors' choices. A firm's internal decision - making (a) lacks strategic interaction with others. A natural monopoly (c) has no competitors, so no strategic interaction for price - setting.

Answer:

B. Price - setting behavior in an oligopoly.