CBSE (Arts) Class 12CBSE
Share
Notifications

View all notifications

Why Are the Firms Said to Be Interdependent in an Oligopoly Market? Explain. - CBSE (Arts) Class 12 - Economics

Login
Create free account


      Forgot password?

Questions

Why are the firms said to be interdependent in an oligopoly market? Explain.

Explain why firms are mutually interdependent in an oligopoly market

Explain the implications of the following:

Interdependence between firms in oligopoly.

Explain the feature 'interdependence of firms' in an oligopoly market.

Solution

Interdependence between firms:- In an oligopoly market, the price and level of an output of one firm impact the price and level of an output of rival firms. Keeping this impact in mind, a firm decides the price and output in accordance with prevailing market conditions. Hence, a high degree of interdependence exists among competing firms, especially with regard to price and quantity of output

  Is there an error in this question or solution?

Video TutorialsVIEW ALL [2]

Solution Why Are the Firms Said to Be Interdependent in an Oligopoly Market? Explain. Concept: Main Market Forms.
S
View in app×