The market structure in which there is interdependence among firms is:
A) monopolistic competition.
B) oligopoly.
C) perfect competition.
D) monopoly.

Question

Quizplus · Accepted Answer

In an oligopoly market structure, the actions of one firm have a significant impact on the other firms in the market. There is a high degree of interdependence among firms, which leads to strategic decision-making and potential collusion. Monopolistic competition is characterized by many firms with differentiated products and low barriers to entry, whereas perfect competition involves many small firms with identical products and no market power. Monopoly is when there is only one firm in the market with significant market power.

The Market Structure in Which There Is Interdependence Among Firms