A ________ Shows How Much a Firm Will Produce as a Function

question 33

Multiple Choice

A ________ shows how much a firm will produce as a function of how much it thinks its competitors will produce.

• A) contract curve
• B) demand curve
• C) reaction curve
• D) Nash equilibrium curve
• E) none of the above

---

Definitions:

Efficient Equilibrium

A state of balance in a market where resources are allocated in the most efficient way possible, with no room for welfare improvement without making someone else worse off.

Relative Price

The price of one good or service compared to another, usually indicating how much of one can be exchanged for the other.

Economic Outcome

The result of economic activities, often measured by metrics such as GDP growth, unemployment rates, and inflation.

Marginal Rate Of Technical Substitution

The rate at which one input can be reduced per additional unit of another input, while maintaining the same level of output.