Oligopolistic firms are the only ones that consider their rivals' actions when making decisions about output and price.

Question

Quizplus · Accepted Answer

Oligopolistic markets are characterized by a small number of large firms that dominate the industry. These firms are interdependent, meaning that they consider their rivals' actions when making decisions about output and price. This is because any change in output or price by one firm will have a significant impact on the other firms in the industry. Therefore, oligopolistic firms must take into account their rivals' actions and reactions when making strategic decisions.

Oligopolistic Firms Are the Only Ones That Consider Their Rivals