--%>

Oligopoly market

Elucidate why are firms mutually interdependent in oligopoly market.

E

Expert

Verified

Firms are mutually interdependent since an individual firms acquires decision regarding price and output subsequent to considering the possible reactions by rival firms.

   Related Questions in Microeconomics

  • Q : Error of commission in uncertainty Can

    Can someone help me in finding out the most precise answer from the given options. The error of commission would be: (1) Student forgets to study for the test. (2) The decision not to make a product which another company later generates successfully. (3) The company s

  • Q : Purely-competitive long-run equilibrium

    The typical firm produces in a purely-competitive long-run equilibrium where price equals as: (1) short-run average cost. (2) marginal cost. (3) long-run average cost. (4) average revenue per unit. (5) All of the above.

    Q : Demand curve for peanuts Question: a)

    Question: a) Johnny consumes peanuts (x1) and a composite good (x2). His utility function is U = x1x2. His marginal utilities are MU1 = x<

  • Q : Market power and market inefficiency

    This is socially undesirable for a monopolist to produce where the price exceeds to marginal social cost [P > MSC] since: (w) resources are allocated inefficiently since too small is produced. (x) too many resources are used and production is exces

  • Q : What will be included in illustrations

    Illustrations of price floors comprised: (1) agricultural subsidies upon, for example: corn. (2) usury laws, that are limits on the interest rates on loans. (3) utility rate structures upon natural gas or electricity. (4) rent controls in London, San

  • Q : Example of predatory behavior Assume

    Assume that a new Wal-Mart is built just outside a small town, and also Wal-Mart aggressively cuts prices therefore much that the rivals close their doors. In that case, once its rivals exit the market, the Wal-Mart raises prices significantly. Wal-Ma

  • Q : Estimate price by price elasticity of

    At the point on the demand curve for RoboMaids where the price elasticity of demand is unitary, the price would be roughly: (i) $10,000, resulting in sales of roughly 16,000 robots monthly. (ii) $13,000, resulting in sales of approxim

  • Q : Marginal productivity theory about

    John Bates Clark's marginal productivity theory gives details that the marginal productivity of resources finds out: (w) the true value of human life. (x) an equitable distribution of tax burdens. (y) the income distr

  • Q : Enter or exit the market in

    A mix of heterogeneous goods and many potential buyers and sellers which are free to enter or exit the market within the long run are among essential conditions for an industry to be: (1) a monopoly. (2) purely competitive. (3) an oli

  • Q : Marginal rate of substitution-marginal

    What is the marginal rate of transformation or marginal rate of substitution or marginal opportunity cost? Answer: It is the ratio of units of one good scarified to