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Firms must consider the possible reaction of rivals to their own decisions and actions in

User Japboy
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Answer:

The correct answer is oligopoly.

Step-by-step explanation:

An oligopoly is a market structure in which there are a few firms that are dominant in the market. These firms may produce identical or differentiated products.

Because of a few firms in the market, the firms are interdependent on each other. Market decisions of a firm affect its rivals.

That is why before making their own decisions, the firms have to consider the reaction of their rivals.

User Arline
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