Mutual interdependence means that each oligopolistic firm: faces a perfectly elastic demand for its product. must consider the reactions of its rivals when it determines its price policy. produces a product identical to those of its rivals. produces a product similar but not identical to the products of its rivals.
Ans: (B) must consider the reactions of its rivals when it
determines its price policy.
Oligopolistic firms are mutually interdependent to each- other
which means that one firm must consider & anticipate the
possible reaction of its rival firms while determining its own