In the context of Game Theory, how do firms typically make decisions?

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Firms are presumed to operate without influence from othersFirms are expected to work together collaborativelyFirms form cartels and engage in collusionFirms take into account the potential moves of competitors before acting

Explanation

In Game Theory, firms strategize by anticipating the choices of other players in the market rather than acting in isolation or always cooperating. This means they consider competitors' possible actions when making decisions.