In the "Reaction Function" Diagram of Question #18 Above, If

question 9

Multiple Choice

In the "reaction function" diagram of Question #18 above, if the firms are at point A and if both firms are seeking to maximize profit, the foreign firm wants to __________ its sales in this market, and the home firm __________its sales in this market.

• A) decrease; also wants to decrease
• B) decrease; wants to increase
• C) increase; wants to decrease
• D) increase; also wants to increase

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Definitions:

Hang Back

To hesitate or hold oneself back from moving forward or taking action.

Political

Relating to the government, public affairs, or the administration of public policy, laws, and strategies.

Religious Discussions

conversations or debates about matters related to faith, belief systems, religious practices, and theology.

Common Interest

A shared personal or professional enthusiasm, concern, or preference among a group of people, often forming the basis for social or occupational connections.