Firms must consider the possible reaction of rivals to their own decisions and actions in which of the following markets?

A) monopolistic competition
B) monopoly
C) oligopoly
D) pure competition

Mutual Interdependence

A situation in an economy where the actions of one participant significantly affect the outcomes of other participants, commonly seen in oligopolistic markets.

Monopolistic Competition

A market structure characterized by many firms offering products or services that are similar but not perfect substitutes, leading to a degree of market power.

Oligopoly

An economic setup in which a handful of companies possess substantial influence on determining market prices and competitive dynamics.