Question

Explain interdependence feature under oligopoly .

Answer 1

Interdependence. Under Oligopoly, since a few firms hold a significant share in the total output of the industry, each firm is affected by the price and output decisions of rival firms. ... Hence, a firm takes into account the action and reaction of its competing firms while determining its price and output levels.

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Answer 2

Answer:

An oligopoly is an industry which is dominated by a few firms. In this market, there are a few firms which sell homogeneous or differentiated products. Also, as there are few sellers in the market, every seller influences the behavior of the other firms and other firms influence it.