Firms in an oligopoly
i.are independent of each other's actions.
ii.can each influence the market price.
iii.charge a price equal to marginal revenue.

Question

Quizplus · Accepted Answer

Firms in an oligopoly can influence the market price by strategically setting their own prices and/or output levels. They often take into account the potential reactions of their competitors when making these decisions. However, they do not necessarily charge a price equal to marginal revenue, as this will depend on their specific cost structures and market conditions. Firms in an oligopoly are not independent of each other's actions, as their choices can have a significant impact on the market as a whole.

Firms in an Oligopoly