In which market structure is there the greatest degree of mutual dependence between firm in choosing their price and output policies?

Question

Quizplus · Accepted Answer

In oligopoly, there are only a few dominant firms in the market who have significant control over the pricing and output policies. Due to this interdependence, any change in the price or output policy of one firm affects the other firms in the market. As a result, firms need to carefully consider the actions of their competitors before making any decisions regarding their own pricing or output policies. This mutual dependence makes oligopoly the market structure with the greatest degree of mutual dependence between firms.

In Which Market Structure Is There the Greatest Degree of Mutual