In an oligopoly,the behavior of any one firm depends on the reaction it expects of all the others in the industry.

Question

Quizplus · Accepted Answer

In an oligopoly market structure, the behavior of a firm is interdependent on the behavior of other firms in the industry. Each firm considers the expected reactions of its competitors when making decisions about pricing, output, and other business strategies. Therefore, the statement is true.

In an Oligopoly,the Behavior of Any One Firm Depends on the Reaction