In an oligopoly, all the firms
A) compete over price alone.
B) compete over advertising.
C) take their competitors into account when they make pricing decisions.
D) face easy entry into and exit from the market.

Question

Quizplus · Accepted Answer

In an oligopoly, firms are highly aware of their competitors' actions, especially regarding pricing decisions. This interdependence means that any pricing decision by one firm is likely to elicit a response from its competitors, making strategic decision-making crucial.

In an Oligopoly, All the Firms