In an oligopoly,when one firm reduces its prices,how do other sellers react?
A) There is no reaction.
B) Other firms reduce their prices also, usually quite quickly.
C) Other firms may reduce their prices, but usually gradually.
D) Other firms are not usually aware that price has changed.

Question

Quizplus · Accepted Answer

In an oligopoly, firms are interdependent, and a price reduction by one firm often leads others to quickly reduce their prices to remain competitive and maintain market share.

In an Oligopoly,when One Firm Reduces Its Prices,how Do Other