The mutual interdependence that characterizes oligopoly arises because

Question

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In an oligopoly, each firm must consider the actions and reactions of its competitors when making pricing and production decisions. This mutual interdependence arises because each firm's profits depend not only on its own pricing strategy, but also on the pricing strategies of its rivals. Therefore, each firm must take into account the likely responses of its competitors when making strategic decisions.

The Mutual Interdependence That Characterizes Oligopoly Arises Because