Which statement is an example of mutual interdependence?
A) Coca-Cola introduces a new tea and monitors how Pepsi will react.
B) Ford lowers the price of its cars and assumes other automakers will not change their prices.
C) Budweiser ignores the introduction of the new Vortex beer bottle by Miller.
D) Airbus increases its advertising budget and assumes this will have no impact on what its rival, Boeing, does.

Question

Quizplus · Accepted Answer

Mutual interdependence occurs when the actions of one firm significantly affect the actions of other firms in the market. In choice A, Coca-Cola's introduction of a new tea and its monitoring of Pepsi's reaction is an example of mutual interdependence because Coca-Cola's actions are based on an expectation of a response from Pepsi, indicating that the decisions of one company are influenced by the anticipated reactions of the other.

Which Statement Is an Example of Mutual Interdependence