Decision makers in oligopolistic firms must devise a strategy. One that yields the highest benefit, regardless of what the other players do is a
A) pricing strategy.
B) rule-of-thumb strategy.
C) dominant strategy.
D) revenue strategy.

Question

Quizplus · Accepted Answer

In an oligopoly, the decision makers must take into account the actions of their competitors when devising their strategy. A dominant strategy is the best choice regardless of what other players do, as it always yields the highest benefit to the decision maker. This means that the decision maker can pursue their dominant strategy without worrying about what their competitors will do. Therefore, the correct answer is C, dominant strategy.

Decision Makers in Oligopolistic Firms Must Devise a Strategy