Firms in an oligopolistic market ________ because they are ________.
A)attempt to predict the behavior of other firms; strategically interdependent
B)form cartels; unable to predict the behavior of other firms
C)ignore other firms' actions; strategically independent
D)advertise; unable to differentiate their products

Question

Quizplus · Accepted Answer

In an oligopolistic market, firms are strategically interdependent, meaning that they take into account the actions of other firms when making their own business decisions. As a result, they attempt to predict the behavior of other firms in order to stay competitive and maintain their market share. This is why choice A is the best answer. Choices B, C, and D are not accurate representations of how firms operate in an oligopolistic market.

Firms in an Oligopolistic Market ________ Because They Are ________

Firms in an Oligopolistic Market Because They Are