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.

Question

Quizplus · Accepted Answer

In an oligopoly market, the actions of any one seller can have a significant impact on the profits of other sellers in the market. Therefore, firms frequently consider the potential responses of their competitors when making decisions regarding pricing, advertising, and investment. As a result, the behavior of one firm will affect how other firms behave in the market.

Because Oligopoly Markets Have Only a Few Sellers, the Actions