A Reaction Function Is

question 190

Multiple Choice

A reaction function is

• A) companies colluding in order to make higher than competitive rates of return.
• B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry.
• C) a game in which firms will not negotiate in any way.
• D) when plans made by firms are known as game strategies.

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Definitions:

Fossil-fuel

Natural fuels such as coal, oil, and natural gas, derived from the remains of living organisms and used primarily for energy.

Industrial Order

A social and economic system characterized by the large-scale industrial production and management of goods and services, often associated with the rise of factories and mechanization.

Factory System

A method of manufacturing using machinery and division of labor, known for its role in the Industrial Revolution by significantly increasing production capabilities and changing societal structures.

Standard Oil

An American oil producing, transporting, refining, and marketing company. Established in 1870 by John D. Rockefeller and partners, it became the largest oil refiner in the world and was later broken up due to antitrust laws.