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Unformatted text preview: rms in the industry account for an overwhelming percentage of the total industry output.
There exists strategic dependence which is a situation in which one firm’s actions with respect to price, quantity, advertising and related changes may be strategically countered by the reactions of one or more other firms in the industry.
Firms in an oligopoly must attempt to predict their rival’s reactions to their actions.
– Not the case in a competitive market or a monopoly. 4 Actions for Firms in an Oligopoly Firms in an oligopoly have two options to choose from when choosing their output and pricing levels. They can:
– Cooperate with the other firms in the Oligopol...
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- Spring '14