Game theory is applicable to oligopoly behavior because oligopolists
A) use strategic behavior.
B) ignore rival firms.
C) are price takers.
D) can only be profitable if they collude.
Question 2
If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?
A) The equilibrium price rises and the equilibrium quantity increases.
B) The equilibrium price falls and the equilibrium quantity decreases.
C) The equilibrium price rises and the equilibrium quantity decreases.
D) The equilibrium price falls and the equilibrium quantity increases.
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