Game theory is a method of analyzing:
A)the costs and benefits of a transaction.
B)the situations in which there are interdependent outcomes.
C)the factors that affect an individual's budget set.
D)the relation between returns and productivity of factors.

Question

Quizplus · Accepted Answer

Game theory involves analyzing situations in which the outcomes of one person's decision are dependent on the decisions of others involved. Thus, option B is the correct choice. The other options (A, C, and D) refer to different areas of economics and are not directly related to game theory.

Game Theory Is a Method of Analyzing