Answer:
B) Because game theory is used to study conflict and cooperation in a competitive arena.
Explanation:
Oligopoly refers to the situation when the competition is limited which means that there are very few firms competing against each other.
Game theory: Studying strategies and actions of firms in a competitive market.
<em>Economists </em>use this study to explain oligopoly because companies have their own interests, and they often take actions which are against other companies so by studying game theory they understand the situation when companies are cooperating or are in conflict.
Economic profits that are present in the short run.
