In oligopoly, a firm must realize:
A) that what it does affects the other firms in the industry.
B) that it must pursue policies always remembering there will be a reaction to those policies by other firms in the industry.
C) that it is in an industry in which one major firm may dominate and the firm will need to judge its actions accordingly.
D) all of the above.

Question

Quizplus · Accepted Answer

In oligopoly, firms must consider how their actions will affect other firms in the industry and anticipate reactions to their policies. In some cases, one major firm may dominate the industry, so firms must judge their actions accordingly. Therefore, all of the above options are correct.

In Oligopoly, a Firm Must Realize