Oligopolists
A)produce unrelated products.
B)make decisions based on others' actions.
C)have no reason to cooperate with each other.
D)cannot affect each other
E)produce homogeneous products.

Question

Quizplus · Accepted Answer

Oligopolists are a small group of large firms who can influence the market. Since there are only a few firms, they tend to consider the actions of their competitors before making any strategic decisions. This interdependence often leads to intense competition and strategic interactions such as price wars or collusion. Therefore, oligopolists base their decisions on the actions of others in the market. The other options are incorrect as oligopolists can produce related or unrelated products, may have reasons to cooperate with each other, and can affect each other through their strategic decisions. However, they may produce either homogeneous or differentiated products.