The change that a firm expects in its competitor's choice of an output level in response to a change the firm makes in its own output level is called the

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Conjectural variation refers to the change a firm anticipates in its competitor's output in response to a change in its own output level. This concept is crucial in understanding strategic interactions in oligopolistic markets, where firms must consider the potential reactions of competitors to their actions.

The Change That a Firm Expects in Its Competitor's Choice