Which of the Following Statements Is True in General About

Multiple Choice

Which of the following statements is true in general about firm actions that are strategic substitutes?

A) Reaction functions are downward sloping & the more of the action one firm chooses, the more of the action the other firm chooses
B) Reaction functions are downward sloping & the less of the action one firm chooses, the less of the action the other firm chooses
C) Reaction functions are upward sloping & the more of the action one firm chooses, the more of the action the other firm chooses
D) Reaction functions are upward sloping & the less of the action one firm chooses, the less of the action the other firm chooses
E) In the Cournot model, quantities are strategic substitutes