Game theory is applicable to oligopoly behavior because oligopolists
A) use strategic behavior.
B) ignore rival firms.
C) are price takers.
D) can only be profitable if they collude.

Question

Quizplus · Accepted Answer

Oligopolists use strategic behavior because they must consider the potential reactions of rival firms when making decisions, as their actions are interdependent.

Game Theory Is Applicable to Oligopoly Behavior Because Oligopolists