Game theory is used in a number of areas in economics. What is the primary reason that it is used in analyzing oligopoly type market structures?
a. The firms are producing a similar product
b. The firms are producing differentiated products
c. The demand curve facing the oligopolistic firms is perfectly inelastic
d. The mutual interdependence of firms in industries with a small number of firms
e. The demand curve the oligopolistic firm faces is downward sloping
D
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The position of a demand curve is unaffected by changes in the price of the good.
Answer the following statement true (T) or false (F)
The United States possesses a large amount of human capital. As a result of this fact, in the United States there is a
A) large amount of machinery and equipment. B) large number of people and a great deal of land. C) highly skilled and educated labor force. D) large number of kind and generous humans. E) large amount of machinery (capital) that is run by people (humans).
When there is a negative externality in a market, too much of the good is produced
Indicate whether the statement is true or false
A change in the money supply changes only nominal variables in the long run
a. True b. False Indicate whether the statement is true or false