The market structure in which strategic considerations are most important is:
A) monopolistic competition.
B) oligopoly.
C) pure competition.
D) pure monopoly.

Question

Quizplus · Accepted Answer

In an oligopoly market structure, there are only a few firms that dominate the market. As a result, strategic considerations such as pricing and advertising decisions are crucial for success. Companies in an oligopoly must anticipate and react to the actions of their competitors in order to remain competitive. Additionally, entry barriers are high, which limits the threat of new competition entering the market. Therefore, firms in an oligopoly have more control over the market and must carefully consider their strategic decisions.

The Market Structure in Which Strategic Considerations Are Most Important