Question

Since oligopolies can lead to either good or bad market outcomes, it is important to understand what strategic decisions firms will want to make. To help model these decisions, economists use:A. The Monopoly game.B. Perfect competition theory.C. Game theory.D. Antitrust law.

Answer 1

Answer:

The correct option is (C) Game theory

Explanation:

The game theory is the way to studying the agent choices who generates the results in an economically manner as compared with the utilities of another agents

So as per the given scenario, as the oligopolies affect the good or bad market results so here the strategic decisions are required to understand for this the economist use the game theory

Therefore the correct option is (C) Game theory