Mutual interdependence means that
A) a firm's behavior is affected by other firms' actions.
B) a firm's profits are affected by other firms' entry or exit.
C) a firm's costs are affected by other firms' costs.
D) a firm's revenues are affected by other firms' demand for its product.

Question

Quizplus · Accepted Answer

Mutual interdependence refers to a situation where a firm's behavior, such as pricing or output decisions, is influenced by the actions of other firms, which is characteristic of oligopolistic markets.

Mutual Interdependence Means That