The Fact That the Firms in an Oligopoly Are Mutually

question 78

Multiple Choice

The fact that the firms in an oligopoly are mutually interdependent means that each firm:

• A)must consider the reactions of its competitors when it sets the price for its output.
• B)produces a product that is similar, but not identical, to the products of its competitors.
• C)produces a product that is identical to the products of its competitors.
• D)faces a perfectly elastic demand curve for its product.

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