The manner in which one oligopolist reacts to a change in price, output, or quality made by another oligopolist in the industry is
A) a cooperative game.
B) the reaction function.
C) a zero-sum game.
D) the concentration ratio.

Question

Quizplus · Accepted Answer

The reaction function shows the manner in which one oligopolist reacts to a change in price, output, or quality made by another oligopolist in the industry. It is a key concept in oligopoly theory and helps to determine the equilibrium outcomes of the industry. The other choices are not relevant to the question or are incorrect.

The Manner in Which One Oligopolist Reacts to a Change