In oligopoly situations, the only sensible policy is meeting competition.

Question

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In oligopoly situations, there are only a few firms in the market and they tend to have a significant impact on prices and competition. Therefore, attempting to engage in aggressive pricing or other strategies to gain market share can often lead to a price war or other negative outcomes. The most practical and effective approach is usually to focus on meeting the competition, offering similar products or services at competitive prices, while finding ways to differentiate the company through quality, service, or other means.

In Oligopoly Situations, the Only Sensible Policy Is Meeting Competition