(Answered) A ____ shows mhow much a firm will produce as a function of how much it thinks its competitors…

➤ Why does a reaction function matter in oligopoly analysis?
Reaction functions matter because they predict how firms adjust output in response to rivals. They show how strategic interactions shape market quantity, price, and welfare. Analysts use them to study market power, incentives to collude, entry effects, and comparative statics in quantity-setting models like Cournot.