The primary cause of mutual interdependence is:
A) the antitrust laws.
B) few sellers in a market.
C) widespread product differentiation.
D) easy entry of new sellers into a market.

Question

Quizplus · Accepted Answer

Mutual interdependence primarily occurs in markets with few sellers, as each seller's actions can significantly impact the market conditions and the actions of other sellers. This situation is typical in oligopolistic markets where the number of sellers is limited, making them highly aware of each other's business decisions.

The Primary Cause of Mutual Interdependence Is