Oligopolists
A)are price takers.
B)rarely advertise.
C)must take rivals' reactions into account.
D)offer homogeneous products.

Question

Quizplus · Accepted Answer

Oligopolists face a small number of competitors in the market and therefore must consider the reactions of their rivals when making decisions about pricing and other strategic actions. This is essential to avoid retaliation or losing market share to competitors. Oligopolies may or may not advertise, and the products they offer may be homogeneous or differentiated. However, they are not price takers as they have some degree of market power due to their market dominance.