Refer to the Following Figure Showing the Reaction Functions of Oligopoly

question 38

Multiple Choice

Refer to the following figure showing the reaction functions of oligopoly firms A and B.

-If firm A anticipates that firm B will run 3 ads, then firm A should run _____ ads in order to maximize its own profit.

• A) 1
• B) 2
• C) 4
• D) 5
• E) 6.5

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Definitions:

Emotional Contagion

The phenomenon of experiencing emotions similar to and influenced by those of others around you.

Territoriality

The instinct or behavior by which an individual or group lays claim to and defends a physical space as their own.

Proxemic Confusion

Misunderstandings or discomfort arising from the misuse of space or physical distance in social interactions.

Interactional Synchrony

The mirroring of actions, emotions, or behaviors between individuals in a social interaction, leading to a sense of harmony and connection.