Which of the following statements is correct?
A)Strategic situations are more likely to arise when the number of decision-makers is very large rather than very small.
B)Strategic situations are more likely to arise in monopolistically competitive markets than in oligopolistic markets.
C)Game theory is useful in understanding certain business decisions, but it is not really applicable to ordinary games such as chess or tic-tac-toe.
D)Game theory is not necessary for understanding competitive or monopoly markets.

Question

Quizplus · Accepted Answer

Game theory is particularly useful in analyzing strategic interactions in oligopolistic markets, where the actions of one firm affect others. In competitive or monopoly markets, strategic interactions are less complex, making game theory less necessary.

Which of the Following Statements Is Correct