In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies?
A) pure monopoly
B) oligopoly
C) monopolistic competition
D) pure competition

Question

Quizplus · Accepted Answer

Oligopoly is characterized by a few large firms dominating the market, resulting in mutual interdependence. Each firm must consider the reactions of its competitors when making price and output decisions, as these decisions will have an impact on the entire market. In contrast, in pure monopoly, there is no competition, while in monopolistic competition and pure competition, there are numerous small firms, and no one firm has a significant impact on the market.

In Which of the Following Market Structures Is There Clear-Cut