Because in oligopoly the actions of one firm have a perceptible effect on the other firms, oligopoly firms act strategically.

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Oligopoly firms act strategically because they are aware that their actions will have an impact on the behavior of the other firms in the market. This interdependence creates a situation where the firms must carefully choose their actions in order to maximize their profits and maintain their market share. For example, if one firm lowers its prices, it may force its competitors to lower their prices as well in order to remain competitive. Conversely, if one firm raises its prices, it may increase its profits but risk losing market share to its competitors. These strategic considerations are an important characteristic of the oligopoly market structure.

Because in Oligopoly the Actions of One Firm Have a Perceptible