A firm that considers the potential reactions of its competitors when it makes a decision
A) is referred to as a price leader.
B) is engaged in strategic behavior.
C) is engaged in collusion.
D) is referred to as a barometric firm.

Question

Quizplus · Accepted Answer

A firm that considers the potential reactions of its competitors when making decisions is engaged in strategic behavior, as it anticipates and plans for the actions and responses of its competitors.

A Firm That Considers the Potential Reactions of Its Competitors