What is the name for the condition where a firm will not take action without considering the reactions of rival firms?

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Mutual interdependence is the condition where a firm recognizes that its actions will have an impact on rival firms, and therefore takes into consideration the reactions of these firms in determining its own course of action. This condition is common in oligopolistic markets where there are a limited number of competitors, making it difficult for firms to ignore the actions of their rivals. Perfect competition is a market structure characterized by a large number of small firms producing homogenous products, while productive efficiency refers to the production of goods at the lowest possible cost. Duopoly refers to a market structure dominated by two firms.

What Is the Name for the Condition Where a Firm