Oligopolists consider the possible responses of rivals when making decisions.

Question

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Oligopolists operate in a market where there are only a few major players. In such a market, each firm needs to consider the possible reactions of its rivals when making decisions. This is because the actions of one firm may affect the profits and market share of others. Therefore, oligopolists need to be strategic and consider the likely reactions of their rivals before making any moves.

Oligopolists Consider the Possible Responses of Rivals When Making Decisions