Oligopolists must ________ to their strategy in order to determine their optimal strategy.

Question

Quizplus · Accepted Answer

In an oligopoly, few firms dominate the market and each firm's decision affects its own profits as well as those of its competitors. Therefore, to determine their optimal strategy, oligopolists must not only anticipate the reactions of their customers but also the reactions of their rivals, as their decisions are interdependent. Hence, both options A and B are correct.

Oligopolists Must ________ to Their Strategy in Order to Determine