The key feature of ________ is that firms act strategically.

Question

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An oligopoly is a market structure in which a small number of firms dominate the market. In this type of market, firms act strategically by considering the actions of their competitors before making decisions about pricing, production, and advertising. This is in contrast to perfectly competitive markets, where firms are price-takers and do not engage in strategic behavior. Monopolies and natural monopolies may also act strategically, but their market power is much more dominant than in an oligopoly.

The Key Feature of ________ Is That Firms Act Strategically