Game theory applies to problems that arise in
A)perfect competition.
B)monopolies.
C)oligopolies.
D)pure competition.

Question

Quizplus · Accepted Answer

Game theory is used to study interdependent decision-making in situations where multiple actors or firms exist. This applies to situations where there are few dominant firms in the market or an oligopoly, leading to a situation of strategic interactions between them. Hence, the correct choice would be option C) Oligopolies.

Game Theory Applies to Problems That Arise in