If a Firm Decides to Ignore the Reactions of Its

question 185

Multiple Choice

If a firm decides to ignore the reactions of its rivals to its policies, the appropriate model to analyze its behavior is

• A)game theory.
• B)perfect competition.
• C)monopoly.
• D)cartels.

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Definitions:

Free Trade

A policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports) or quotas.

Imported Tires

Tires that are manufactured outside a country and are brought in through trade.

Stimulus Plan

A package of economic measures put together by a government to stimulate a floundering economy.

Immigration

The action of coming to live permanently in a foreign country.