Option a. actions, rivals, reactions is the correct answer. An oligopoly knows that its actions affect its rivals and that the reactions of its rivals will affect it.
The word 'Oligopoly' is coined by two Greek words: 'Oligoi, which means 'a a few' and 'pollein' which means 'selling.' It happens when a market consists of some companies producing the same or differentiated product.
Oligopoly- There are few sellers under this, and they enjoy a huge market share. Due to less competition and the oligopoly of a large firm, partnerships and collusion are possible. Firms under the oligopoly have a high degree of mutual interconnectedness because each firm takes into account the reaction curves of rival firms and determines their price and quantity.
An oligopoly understands that its actions have an impact on its rivals and that the reactions of its rivals will have an impact on it.
Hence, option a is the correct answer.
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