The difficulty in analyzing oligopolistic behavior arises from the
A) degree of government regulation of the market structure.
B) interdependent nature of oligopolistic decisions.
C) large number of firms in the industry.
D) market power of consumers.

Question

Quizplus · Accepted Answer

The interdependent nature of oligopolistic decisions makes it difficult to analyze oligopolistic behavior. Oligopolistic firms are interdependent because their decisions about price, output, and other strategic variables affect the profits of their rivals. This interdependence makes it difficult for oligopolistic firms to predict the behavior of their rivals and to make optimal decisions.

The Difficulty in Analyzing Oligopolistic Behavior Arises from the