Why firms are interdependent in the oligopoly market structure
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Heya....
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Firms are of small no but at large scale in oligopoly so they gave high degree of interdependency...
Let's see....
If a firm increase its prices then the consumers will shift to rival 's firm and that firm bear loss..
If firm decrease it's price then may be rival firm not decrease , so it have to sell at low price not her accepts...
""" So,, firm are interdependent to each other in terms of market shares...
-- Be Brainly...
See here for your answer....
=======
Firms are of small no but at large scale in oligopoly so they gave high degree of interdependency...
Let's see....
If a firm increase its prices then the consumers will shift to rival 's firm and that firm bear loss..
If firm decrease it's price then may be rival firm not decrease , so it have to sell at low price not her accepts...
""" So,, firm are interdependent to each other in terms of market shares...
-- Be Brainly...
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Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time.
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