In oligopoly, any action by one firm causes
A)no reaction by other firms.
B)a reaction by other firms.
C)a profit gain by other firms.
D)a profit loss by other firms.
E)a loss of market share by other firms.

Question

Quizplus · Accepted Answer

In oligopoly, any action by one firm causes a reaction by other firms. This is because there are only a few dominant firms in the market and their actions can have a significant impact on the market as a whole. Other firms in the market will need to respond to these actions in order to maintain their market position and profitability.

In Oligopoly, Any Action by One Firm Causes