A best response function:
A) is also known as a strategic demand function.
B) is upward-sloping if free riding occurs.
C) shows the relationship between a player's choice and another player's best response.
D) plots all of the Nash equilibriums in a game.

Question

Quizplus · Accepted Answer

A best response function shows the relationship between a player's choice and another player's best response, allowing the player to choose the optimal strategy in response to the other player's actions. Therefore, option C is the correct answer. Option A is partly correct, as a best response function is also known as a strategic demand function in some cases. Option B is incorrect, as an upward-sloping best response function indicates a positive relationship between a player's own strategy and the other player's best response, not free riding. Option D is also incorrect, as a best response function does not plot all Nash equilibriums in a game, but rather helps identify them.

A Best Response Function