When interdependence exists between sellers in a market, then
A)each seller relies on another seller in the market to supply its inputs.
B)all sellers produce an identical product.
C)each seller's best choice depends on what the other sellers choose to do.
D)there must be a rising market demand for any seller to increase its sales.

Question

Quizplus · Accepted Answer

Interdependence between sellers in a market means that each seller's best choice depends on what the other sellers choose to do. This is because their pricing or output decisions can impact the demand for their products and affect their competitiveness in the market. Therefore, they have to consider the actions of their competitors when making decisions.

When Interdependence Exists Between Sellers in a Market, Then