Oligopolists take into account the actions and reactions of their competitors when making price and output decisions.

Question

Quizplus · Accepted Answer

Oligopolists are aware of the interdependence of their decisions on those of their competitors. As a result, they take into account the potential reactions of their rivals when determining their own price and output strategies. This is known as strategic interdependence, which is a defining feature of oligopoly.

Oligopolists Take into Account the Actions and Reactions of Their