In a situation of mutual interdependence and identical products, managers of oligopolistic firms ________a response to their rivals' actions and________ compete on price.

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In oligopolistic markets, firms are highly interdependent because the actions of one firm can significantly impact the profits of all other firms in the market. Therefore, managers of these firms must anticipate and respond to their rivals' actions. However, they tend to avoid competing on price because such competition can lead to price wars, reducing profits for all firms involved. Instead, they may compete on other factors such as product differentiation, marketing, and customer service.

In a Situation of Mutual Interdependence and Identical Products, Managers