It is difficult to predict the behavior of oligopolistic firms because
A) there are few real-world examples of oligopolies for economists to study.
B) oligopolists make decisions independently of each other.
C) firms in oligopolistic industries react to each other's behavior in many ways.
D) economists have paid little attention to the topic in recent years and so have not yet applied to it the techniques of modern economic theory.

Question

Quizplus · Accepted Answer

Oligopolistic firms are interdependent and must consider the potential reactions of other firms when making decisions, leading to complex and varied behaviors.

It Is Difficult to Predict the Behavior of Oligopolistic Firms