Strategic behavior is key in defining which market structure?
A)Monopoly
B)Oligopoly
C)Monopolistic competition
D)Perfect competition

Question

Quizplus · Accepted Answer

Strategic behavior, specifically the interdependence among firms, is a defining characteristic of an oligopoly market structure. In this type of market, firms consider the reactions of their rival firms when making decisions about pricing, output, and other strategic choices. Monopoly and perfect competition do not involve interdependence among firms, while monopolistic competition involves some but not as much interdependence as seen in oligopoly.

Strategic Behavior Is Key in Defining Which Market Structure