Which of the following statements is true in general about firm actions that are strategic complements?
A)Reaction functions are downward sloping & the more of the action one firm chooses, the more of the action the other firm chooses
B)Reaction functions are downward sloping & the less of the action one firm chooses, the less of the action the other firm chooses
C)Reaction functions are upward sloping & the more of the action one firm chooses, the more of the action the other firm chooses
D)Reaction functions are upward sloping & the less of the action one firm chooses, the less of the action the other firm chooses
E)In the Cournot model, quantities are strategic complements

Question

Quizplus · Accepted Answer

In the case of strategic complements, the reaction functions are upward sloping, meaning that if one firm increases its level of action, the other firm will also increase its level of action.

Which of the Following Statements Is True in General About