An industry composed of three firms,each of which considers the potential reactions of its rivals in making pricing decisions,yet is not concerned with the potential entry of other firms,can best be described as:
A)perfect competition
B)a monopoly
C)an oligopoly
D)monopolistic competition
E)competitive monopoly

Question

Quizplus · Accepted Answer

An oligopoly is a market structure where a small number of firms dominate the market. In an oligopoly, firms consider the potential reactions of their rivals when making pricing decisions but are not concerned with the entry of new firms. This is because the barriers to entry are high, and the existing firms have already established their positions in the market.

An Industry Composed of Three Firms,each of Which Considers the Potential