Game theory can be used to investigate
A)why cartels break down.
B)why some firms maintain excess productive capacity.
C)how oligopolists set prices.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Game theory can be applied to study different scenarios in various industries. It can be used to analyze the behavior of cartels and why they eventually break down, examine why some firms maintain excess capacity, and understand the pricing decisions made by oligopolistic firms. Therefore, option D is the correct choice as all the options relate to areas where game theory can be used.

Game Theory Can Be Used to Investigate