For firms competing in a world characterized by oligopolistic competition, strategic motives can be subdivided into proactive and defensive investments.

a. True

b. False

The answer is A. true.

In oligopolistic competition, firms implement non-price competition, such as product differentiation and advertisements. This type of competition can be achieved efficiently through proactive and defensive investment strategies. Proactive strategies entail actively and continuously planning while anticipating a change in order to take control of situations or to minimize the possibility of the occurrence of competitive challenging. On the other hand, defensive strategies involve the actions that are implemented to protect a company's competitive advantage.