Suppose we want to use game theory to analyze how an oligopolist selects its optimal price. The cells of the payoff matrix show
A) the strategy that a firm must pursue to earn various levels of profit.
B) the profit that each producer can expect to earn by pursuing a single strategy.
C) the expected profits of rival firms.
D) the profit that each producer can expect to earn from every combination of strategies by the firms in the market.
D
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Economists call the fact that the general public has little incentive to become informed about most political issues _____
a. rational ignorance b. irrational voting c. a diminishing political marketplace d. cyclical political institutions
If an increase in income results in a rightward parallel shift of the demand curve, then at any given price, the price elasticity of demand will have
A) increased in absolute terms. B) decreased in absolute terms. C) remained unchanged. D) increased, decreased or stayed the same. It cannot be determined.