Author Question: In game theory, a strategy A) is useless, because firms are subject to bounded rationality. B) ... (Read 33 times)

bio_gurl · **on:** Jul 1, 2018

In game theory, a strategy

A) is useless, because firms are subject to bounded rationality.
B) is useful in static games, but not in dynamic games.
C) defines the specific actions a firm will make.
D) determines the payoff matrix of the game.

Question 2

A monopolist will spend resources to advertise its product so long as

A) net profits increase.
B) gross profits increase.
C) demand increases.
D) total revenue increases.