Mutual interdependence applies to actions of:
A) monopolistic competitors.
B) oligopolists.
C) perfect competitors.
D) monopolists.
E) firms operating in different industries.

Question

Quizplus · Accepted Answer

Mutual interdependence refers to a situation where the actions of one firm in an industry affect the actions and outcomes of other firms in the same industry. This is most commonly seen in oligopolistic markets, where a small number of firms dominate the market and must take each other's actions into account when making strategic decisions. Monopolistic competitors and perfect competitors do not have the same level of mutual interdependence because they do not have as much market power, and their actions are unlikely to significantly impact the overall market. Monopolists are the only firm in their market, and therefore do not have any other firms to consider when making strategic decisions. Firms operating in different industries are unlikely to be mutually interdependent because they are not competing directly with each other.

Mutual Interdependence Applies to Actions Of