A ________ shows how much a firm will produce as a function of how much it thinks its competitors will produce.
A) contract curve
B) demand curve
C) reaction curve
D) Nash equilibrium curve
E) none of the above

Question

Quizplus · Accepted Answer

A reaction curve shows a firm's production level as a function of its expectation of competitors' production levels. It helps the firm to determine the best response to actions taken by its competitors.

A ________ Shows How Much a Firm Will Produce as a Function