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An industry comprising a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called
A) monopolistic competition.
B) oligopoly.
C) pure monopoly.
D) pure competition.
Price-Output Decisions
The process by which firms decide at what production levels and prices they will operate to maximize profits.
Small Number
A numerical value considered low in quantity or magnitude, often contextually determined based on comparison or specific thresholds in various fields.
Rivals
Rivals are competitors within the same industry or market vying for the same customer base or resources, often engaging in competitive strategies to gain an advantage.
- Gain insight into the relationship between the number of companies in an industry and its impact on market models and competition scales.
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Learning Objectives
- Gain insight into the relationship between the number of companies in an industry and its impact on market models and competition scales.
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