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In an oligopoly, a firm that neglects to consider rivals' actions risks making pricing and production decisions that could lead to significant losses. For example, if it sets prices too high without accounting for competitors' responses, it may lose market share and profitability. Conversely, if it lowers prices aggressively, it could trigger a price war, further eroding margins. Thus, ignoring rivals can result in suboptimal strategies and diminished competitive advantage.

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