Question

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 pure competition. pure monopoly. oligopoly. monopolistic competition.

Answer 1

The correct answer for this question is this one: "A. monopolistic competition." 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 monopolistic competition.