Question

An industry dominated by a few firms, where each of those firms recognizes that its own choices will affect the choices of its rivals and that its rivals' choices will affect it, is a(n):A) monopoly.
B) oligopoly.
C) monopolistic competition.
D) perfect competition.

Answer 1

Answer:

The correct answer is B

Explanation:

Oligopoly is the market or industry structure, which have a few or small numbers of the firms and in this every firm recognizes its own actions and will produce a response from the rivals and those kind of responses will affect it each other.

The firms which dominate this market structure, will acknowledge that the firms are independent and what is done by one firm affects and influence each of the others.