Saved Bookmarks
| 1. |
Explain how firms are interdependent in an oligopoly market. |
| Answer» SOLUTION : Firms under oligopoly are interdependent. INTERDEPENDENCE MEANS that actions of one firm AFFECT the actions of other firms. A firm considers the ACTION 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. | |