Explain how firms are interdependent in an oligopoly market.

1.	Explain how firms are interdependent in an oligopoly market.
Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> : Firms under oligopoly are interdependent. <a href="https://interviewquestions.tuteehub.com/tag/interdependence-517307" style="font-weight:bold;" target="_blank" title="Click to know more about INTERDEPENDENCE">INTERDEPENDENCE</a> <a href="https://interviewquestions.tuteehub.com/tag/means-1091780" style="font-weight:bold;" target="_blank" title="Click to know more about MEANS">MEANS</a> that actions of one firm <a href="https://interviewquestions.tuteehub.com/tag/affect-851195" style="font-weight:bold;" target="_blank" title="Click to know more about AFFECT">AFFECT</a> the actions of other firms. A firm considers the <a href="https://interviewquestions.tuteehub.com/tag/action-2544" style="font-weight:bold;" target="_blank" title="Click to know more about ACTION">ACTION</a> and reaction of the rival firms while determining its price and output levels. A change in output or price by one firm evokes reaction from other firms operating in the market.</body></html>

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