The way in which an oligopolist acts in response to a price change by a competitor is known as a
A) zero-sum game.
B) positive-sum game.
C) reaction function.
D) cooperative game.

Question

Quizplus · Accepted Answer

The way in which an oligopolist reacts to a price change by a competitor is known as a reaction function. This is because in an oligopolistic market, competitors' actions and reactions play a vital role in determining the overall market outcomes. Oligopolists often consider the potential reactions of their competitors when making pricing and production decisions.

The Way in Which an Oligopolist Acts in Response to a Price