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CFA Level 1
Economics

Identifying Market Structures in Microeconomics

Very Hard Microeconomics Market Structures

Consider a market characterized by a small number of firms that produce a product that is homogeneous and face interdependent decision-making regarding pricing and output levels. In this market structure, firms recognize their market power but also understand that the actions of one firm directly affect the others, leading to strategic behavior. This scenario often fits the description of which market structure?

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