Oligopolies operate with mutual interdependence when their actions take into account the behavior of their competitors.

Question

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In an oligopoly, a few firms dominate the market, and each firm's decisions (such as pricing, output, and advertising) are interdependent on the actions of the other firms, leading to a situation where they must consider their competitors' potential reactions to their own actions.

Oligopolies Operate with Mutual Interdependence When Their Actions Take into Account