Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called: mutual dependence. mutual interdependence. monopolistic behavior. profit-maximization behavior.

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Business

Madilynn Hunter

17 December, 15:55

Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called: mutual dependence. mutual interdependence. monopolistic behavior. profit-maximization behavior.

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Talon Lam · Answer 1

Option B is correct one.

Mutual interdependence

Explanation:

Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called mutual interdependence.

Mutual interdependence is a term in which a group of oligopolies all benefit from one another. They can benefit through market share, location in terms of geography, product differentiation, price allocation, etc.