Which of the following is likely to use the concepts of game theory?
A) Household budgeting
B) The exit decisions of competitive firms in the long run
C) International trade negotiation
D) The pricing decision of a firm operating in a competitive market

Question

Quizplus · Accepted Answer

Game theory is commonly used to analyze and predict the outcomes of strategic interactions between two or more parties, which makes it highly applicable to international trade negotiations. The other options are mainly related to microeconomics and do not involve strategic interactions between parties, making them less likely to use game theory.

Which of the Following Is Likely to Use the Concepts