Strategic behavior is key feature in which market structure?
A) Monopoly
B) Oligopoly
C) Monopolistic competition
D) Perfect competition

Question

Quizplus · Accepted Answer

Strategic behavior, which involves firms taking into account the actions and reactions of their competitors when making decisions, is a key feature in oligopoly. In this market structure, a small number of large firms dominate the market and are interdependent, meaning their actions have a significant impact on each other's profits. In contrast, in perfect competition, monopolistic competition, and monopoly, firms are largely price takers and do not engage in strategic behavior to the same extent.

Strategic Behavior Is Key Feature in Which Market Structure