When oligopolists take into account their competitors' behavior, this situation is called:
A) mutual interdependence.
B) monopolistic competition.
C) independent.
D) price discrimination.
E) loss minimization.

Question

Quizplus · Accepted Answer

Mutual interdependence occurs when firms in an oligopoly take into account the actions and reactions of their competitors before making decisions. This is because their decisions can have a significant impact on the market and the profits of other firms in the industry. As such, oligopolists must consider the strategies of their competitors and adjust their own strategies accordingly to maintain a competitive advantage.

When Oligopolists Take into Account Their Competitors' Behavior, This Situation