When strategic interactions are important to pricing and production decisions,what will a typical firm do

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When strategic interactions are important, firms will consider how competing firms might respond to their actions. This is because the actions of one firm can affect the decisions and outcomes of other firms in the market. Firms will often engage in strategic behavior such as price competition, product differentiation, and advertising to gain a competitive advantage over their rivals. Therefore, a typical firm will analyze the behavior of its competitors and take it into account when making pricing and production decisions.

When Strategic Interactions Are Important to Pricing and Production Decisions,what