Suppose We Want to Use Game Theory to Analyze How

Multiple Choice

Suppose we want to use game theory to analyze how an oligopolist selects its optimal price.The payoff matrix shows

A) the profit that each producer can expect to earn by pursuing a single strategy.
B) the profit that each producer can expect to earn from every combination of strategies by the firms in the market.
C) the strategy that a firm must pursue to earn various levels of profit.
D) the expected profits of rival firms.