An industry is dominated by a few firms.Each of these firms acknowledges that its own choices affect the choices of its rivals.Each firm also recognizes that its rivals' choices affect the decisions it makes.This industry is an example of:

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An oligopoly is characterized by a few dominant firms in the industry, where each firm's decisions influence its rivals and vice versa. This is different from a monopoly where there is only one dominant firm and monopolistic competition where there are many small firms with differentiated products. Perfect competition is characterized by many small firms that cannot influence prices.

An Industry Is Dominated by a Few Firms