Chapter 17/Oligopoly ❖ 131 Sec00 - Oligopoly MULTIPLE CHOICE 1. In the language of game theory, a situation in which each person must consider how others might respond to his or her own actions is called a a. quantifiable situation. b. cooperative situation. c. strategic situation. d. tactical situation. ANS: C 2. In general, game theory is the study of a. how people behave in strategic situations. b. how people behave when the possible actions of other people are irrelevant. c. oligopolistic markets. d. all types of markets, including competitive markets, monopolistic markets, and oligopolistic markets. ANS: A 3. 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. ANS: D 4. In which of the following markets are strategic interactions among firms most likely to occur? a. markets to which patent and copyright laws apply b. the market for piano lessons c. the market for tennis balls d. the market for corn ANS: C