Interdependence is the key characteristic of
A) perfect competition.
B) monopolistic competition.
C) oligopoly.
D) monopoly.

Question

Quizplus · Accepted Answer

Interdependence, where the actions of one firm affect the actions and outcomes of others, is a key characteristic of oligopoly. In perfect competition, no single firm has enough market power to affect the overall market, while in monopolistic competition, firms differentiate their products to reduce interdependence. In a pure monopoly, there are no other firms present to affect the market outcomes.

Interdependence Is the Key Characteristic of