The analysis of oligopolistic behavior is difficult 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 behavior analysis is difficult because firms in oligopolistic industries react to each other's behavior in various ways. The interdependence among firms in an oligopoly makes it challenging for economists to analyze the behavior and strategies of individual firms.

The Analysis of Oligopolistic Behavior Is Difficult Because