In the "reaction function" diagram of Question #18 above, if the firms are at point A and if both firms are seeking to maximize profit, the foreign firm wants to __________ its sales in this market, and the home firm __________its sales in this market.
A) decrease; also wants to decrease
B) decrease; wants to increase
C) increase; wants to decrease
D) increase; also wants to increase
Correct Answer:
Verified
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