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Refer to the Following Figure Showing the Reaction Functions of Oligopoly

Question 7

Multiple Choice

Refer to the following figure showing the reaction functions of oligopoly firms A and B. Refer to the following figure showing the reaction functions of oligopoly firms A and B. If firm A anticipates that firm B will run 3 ads,then firm A should run _____ ads in order to maximize its own profit. A) 1 B) 2 C) 4 D) 5 E) 6.5 If firm A anticipates that firm B will run 3 ads,then firm A should run _____ ads in order to maximize its own profit.


A) 1
B) 2
C) 4
D) 5
E) 6.5

Correct Answer:

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