An important factor explaining the behavior of sellers in oligopolistic markets is:
A) mutual interdependence.
B) that each seller faces no direct competition from the other sellers.
C) that each seller feels it has no control over the price of its product.
D) government controls over decision making by all sellers in these markets.

Question

Quizplus · Accepted Answer

Mutual interdependence is a key characteristic of oligopolistic markets, where a few sellers dominate the market and each one's actions (such as pricing, output levels, and advertising) can significantly affect the others. This interdependence means that firms must consider the potential reactions of their competitors when making decisions.

An Important Factor Explaining the Behavior of Sellers in Oligopolistic