A Reaction Function Shows That

question 27

Multiple Choice

A reaction function shows that:

• A) a ?rm's pro?t-maximizing output varies with its rival's output decision.
• B) prices in the market are assumed to be constant.
• C) ?rms do not make strategic decisions simultaneously.
• D) one ?rm in the market has ?rst-mover advantage.

---

Definitions:

Dysfunctional Behaviors

Actions or habits that are negative and do not support the wellbeing or goals of an individual or group.

Eye Contact

The act of looking directly into another person's eyes, which can communicate attention, confidence, and sincerity.

Clarifying Questions

Questions asked to gain a clearer understanding of a statement or piece of information, ensuring accurate comprehension.

Virtual Teams

Groups of individuals who work together from different geographic locations, often connected by technology such as video conferencing or collaborative software.