under market firms are mutually interdependent?
Answers
Answer:
Firms are interdependent because each firm takes in to consideration the likely reactions of its rival firms when deciding its output and price policy. ... This makes the demand curve under the oligopoly market structure indeterminate, thereby makes the firms mutually interdependent in an oligopoly market.
Answer:
One of the main characteristics of oligopoly market is interdependence. Firms that are interdependent cannot act independently of each other. A firm operating in a market with just a few competitors must take the potential reaction of its closest rivals into account when making its own decisions
Explanation:
Firms operating under conditions of oligopoly are said to be interdependent , which means they cannot act independently of each other. A firm operating in a market with just a few competitors must take the potential reaction of its closest rivals into account when making its own decisions.