When firms are faced with making strategic choices in order to maximize profit,

Question

When firms are faced with making strategic choices in order to maximize profit, economists typically use ____ to model their behavior. a. monopoly theory b. game theory
c. cartel theory d. the theory of aggressive competition e. the theory of perfect competition
A dominant strategy is: a. one that maximizes the social welfare. b. one that maximizes profit. c. one that maximizes a player's welfare, regardless of the behavior of a competitor.
d. one that maximizes a player's welfare, given the actions of a competitor.

Explanation / Answer

1. b. game theory 2. c. one that maximizes a player's welfare, regardless of the behavior of a competitor.

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