单选题 An oligopolistic firm:

A. will consider the potential response of its rivals when making business decisions.
B. is likely to be formed when the minimum-cost output is only a small portion of the market output.
C. is likely to be formed when barriers to entry are low.

【正确答案】 A

【答案解析】Oligopolists are highly dependent upon the actions of their rivals when making business decisions. Price determination in the auto industry is a good example. Automakers tend to play "follow the leader" and announce price increases in close synchronization. They are not working explicitly together, but the actions of one producer have a large impact on the others when products are differentiated, quality may be a competitive strategy.