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 responses are correct.

Question

Quizplus · Accepted Answer

Game theory can be used to investigate various aspects of firms' behavior including the breakdown of cartels, the maintenance of excess productive capacity, and the setting of prices in oligopolistic markets. Therefore, all of the responses are correct.

Game Theory Can Be Used to Investigate