A firm will shut down in the short-run if

Two companies, Acme and Pinnacle, each decide whether to produce a good quality product or a poor quality product. In the figure, the dollar amounts are payoffs and they represent annual profits for the two companies. The dominant strategy for Acme is to ________________

Fill in the blank(s) with the appropriate word(s).

Game theory is most useful for determining the outcome when ________

A) the market structure is oligopoly B) monopolistic competition exists C) prison terms are involved D) the market is dominated by a monopoly