4.7k views
2 votes
Firms must consider the possible reaction of rivals to their own decisions and actions in

User Japboy
by
8.1k points

1 Answer

6 votes

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
by
7.7k points

No related questions found