An oligopoly knows that its _______ affect(s) its _______ and that the _______ of its rivals will affect it.
A) actions; rivals; reactions
B) price changes; total revenue in a positive way; reactions
C) actions rarely; rivals; actions
D) price increases; total revenue in the long run only; large but not small price changes

Question

Quizplus · Accepted Answer

In an oligopoly, actions taken by one firm can impact the behavior of its competitors. As a result, understanding how competitors will react to certain actions is crucial for firms when making decisions. Therefore, the correct answer is A: actions; rivals; reactions.

An Oligopoly Knows That Its _______ Affect(s) Its _______ and That

An Oligopoly Knows That Its _ Affect(s) Its _ and That