Drew rents strong although nasty bouncers to nightclubs, and also an imperfectly competitive industry. But he knows that his actions potentially influence prices and the market supplies of bouncers, therefore he tries to predict his competitors’ reactions and adjusts so. Most modern economists would try to interpret Drew’s decisions with applying: (w) structure-conduct performance analysis. (x) the excess capacity theorem. (y) cartel pricing theory. (z) game theory.
Please choose the right answer from above...I want your suggestion for the same.