The type of industry in which there are a few firms and each of these firms thinks about,anticipates,and reacts to the other firms' moves is called
A)monopoly.
B)oligopoly.
C)monopolistic competition.
D)pure competition.
E)competition.

Question

Quizplus · Accepted Answer

An oligopoly is a market structure in which a few firms dominate the market and their actions are interdependent. This means that each firm in the industry must constantly monitor the actions of the other firms and consider how their own actions will affect the other firms in the industry. They are also likely to engage in strategic behavior, such as price collusion or price leadership, in order to maintain their market power. Therefore, the description of the question best fits an oligopoly. Monopoly refers to a market structure in which there is only one seller, while monopolistic competition and pure competition refer to market structures with a large number of firms.

The Type of Industry in Which There Are a Few