Asked by hannah pyron on May 28, 2024
Verified
In oligopoly,a firm must realize that:
A) what it does has no effect on the other firms in the industry.
B) its behavior will be ignored by other firms in the industry.
C) another major firm may dominate choices in the industry,and it will have to behave accordingly.
D) collusion was made legal in 2004.
Dominate Choices
refers to decisions or options that prevail over others in a given situation, often considered superior in achieving desired outcomes.
Major Firm
A significant company in its industry, often characterized by large revenue, extensive operations, and considerable market influence.
Oligopoly
An oligopoly is a market structure dominated by a small number of large firms, leading to limited competition, where the actions of one firm significantly impact the others.
- Recognize the strategic interdependence of firms in an oligopoly.
Verified Answer
Learning Objectives
- Recognize the strategic interdependence of firms in an oligopoly.
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