If firms in an industry make output decisions that are partially based on the price and output decisions of their competitors, then these firms are in ________ market have ________ with the other firms in the market.
A) an oligopoly; interdependence
B) an oligopoly; no interdependence
C) an oligopoly or monopolistically competitive; interdependence
D) a monopolistically competitive; no interdependence

Question

Quizplus · Accepted Answer

In an oligopoly, firms are interdependent because each firm's decisions affect the market and the decisions of other firms.

If Firms in an Industry Make Output Decisions That Are