मराठी

Why are firms in a duopoly said to be interdependent?

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प्रश्न

Why are firms in a duopoly said to be interdependent?

पर्याय

  • Their decisions are fixed and never change

  • Each firm’s decisions affect the other firm

  • They do not care about each other’s actions

  • Government fixes their prices

MCQ
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उत्तर

Each firm’s decisions affect the other firm

Explanation:

In a duopoly, each firm must think about how the rival will react to changes in price, output, or advertising.

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