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____ [38]
3 years ago
14

When firms are faced with making strategic choices to maximize profit, economists typically use a. the theory of monopoly to mod

el their behavior. b. the theory of aggressive competition to model their behavior. c. game theory to model their behavior. d. cartel theory to model their behavior
Business
1 answer:
stepladder [879]3 years ago
6 0

Answer:

The correct answer is option c.

Explanation:

Game theory is a tool in economics. It helps to understand the situation in cases where rational players interact and act in a strategic manner. For instance in an oligopoly market where there are few firms, which are interdependent.

These firms or producers are rational players who have to decide output and price level in order to maximize their economic profits.

The theory of monopoly can be applied only in case of monopoly market. The cartel theory is applicable if firms have formed a cartel. Aggressive competition model is not always necessary.

So, the correct answer here will be option c.

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Answer:

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Explanation:

When a company or a family installs extra insulation in their buildings or homes, then they will end up spending less money on both their electricity and heating bills. That will result in a lower demand for oil, so the price of oil will go down. As oil prices go down, the oil companies will decrease the oil supply until a new equilibrium point is reached.

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which of the following is not considered a credit?

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Explanation:

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Assume that the real GDP in Year 2022 is $8000 and the GDP deflator is 200. Calculate the Nominal GDP. Show your work. *
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pentagon [3]

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Private groups and the news media play important roles in shaping opinions in the marketplace of ideas.

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assume bell computer company operates in a perfectly competitive market producing 5,000 computers per day. at this output level,
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In a perfectly competitive market bell computers will cause profits to increase by producing one more.

A hypothetical market system is referred to as perfect competition. Perfect competition offers a valuable model for illustrating how supply and demand influence pricing and behaviour in a market economy, despite perfect competition seldom occurring in actual markets.

One of the most efficiently operating markets is one with perfect competition, when a large number of buyers and suppliers cooperate perfectly. Sadly, it is a hypothetical event that does not occur in the real world. But in order to guarantee a fair price for all goods and services, markets should strive to be as similar to this type of market as feasible.

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