Q1. Firms in oligopoly must constantly think in terms of how other firms in the industry will react to whatever th do. Why do they have to do this? Why is it that firms in perfect competition and in monopoly don't have to worry about how other firms will react?

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Oligopoly
Section: Chapter Questions
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Q1. Firms in oligopoly must constantly think in terms of
how other firms in the industry will react to whatever they
do. Why do they have to do this? Why is it that firms in
perfect competition and in monopoly don't have to worry
about how other firms will react?
Transcribed Image Text:Q1. Firms in oligopoly must constantly think in terms of how other firms in the industry will react to whatever they do. Why do they have to do this? Why is it that firms in perfect competition and in monopoly don't have to worry about how other firms will react?
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