Why are the firms said to be interdependent in an oligopoly market?
Answers
Answered by
0
Heya...
Oligopoly is that form of market in this there are few numbers of big firms and large buyers of that commodity...
The firm's are interdependent to each other in oligopoly because....
Price and output behavior of one firm often leads to reaction by other forms in market.. Thus a producer firm may not be willing to raise the product price in getting rivels firms also may not increase it and same as vice versa...
This is all about cut throat competition it means once firm behavior depends on other rivel firms....
Oligopoly is that form of market in this there are few numbers of big firms and large buyers of that commodity...
The firm's are interdependent to each other in oligopoly because....
Price and output behavior of one firm often leads to reaction by other forms in market.. Thus a producer firm may not be willing to raise the product price in getting rivels firms also may not increase it and same as vice versa...
This is all about cut throat competition it means once firm behavior depends on other rivel firms....
Similar questions