Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called
A) monopolistic behavior.
B) profit-maximization behavior.
C) mutual interdependence.
D) mutual dependence.

Question

Quizplus · Accepted Answer

Mutual interdependence is the correct term because it describes the situation in oligopolistic markets where each firm must consider the potential reactions of its competitors when making decisions, especially regarding pricing.

Each Oligopolistic Firm Recognizes That It Must Take into Account