In the oligopoly market structure, each firm must acknowledge that Question 6 options: there are no barriers to entry so long-term competition is likely. no firm can dominate so it must select the most competitive action. what it does has no effect on the other firms in the industry. there will be a reaction to any strategic action it takes by other firms in the industry.
Added by Emilio L.
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In an oligopoly, a small number of firms dominate the market, and each firm has some degree of market power. This means that the actions of one firm can significantly affect the market and the other firms within it. Show more…
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Why is mutual interdependence important under oligopoly but not so important under perfect competition, monopoly, or monopolistic competition? Check all that apply. --> None of the oligopolistic firms can affect the market prices. --> Under oligopoly, there is no other firm in the industry. --> Under monopoly, there is no other firm in the industry. --> A monopolistically competitive firm can raise its price slightly above its competitors without anticipating their reactions. --> In perfect competition, no single firm's price changes affect the market prices.
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Under oligopoly since there are only a few firms in the industry, the actions of one firm do not influence the other firm in the industry.
Because oligopoly markets have only a few sellers, the actions of any one seller... a.) do not affect other sellers in the market. b.) can have a large impact on the profits of other sellers in the market. c.) will affect how other firms behave in the market. d.) Both b and c are correct.
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