Discussion
The basic objective of applying the game theory is :
Answer: C
The key's answer is to arrive at the dominant strategy.
Game theory studies situations in which each player's best choice depends on what the others do, as among oligopoly firms. Applying it means working out the best strategy for each player given the possible strategies of rivals; where a strategy is best whatever rivals do, it is a dominant strategy, and the analysis leads to an equilibrium such as the Nash equilibrium.
Maximising profit or sales, or minimising marginal cost, are goals a firm may have, but they do not describe what game theory itself is used for, which is choosing strategies under strategic interdependence.
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