The fact that the firms in an oligopoly are mutually interdependent means that each firm: must consider the reactions of its competitors when it sets the price for its output. produces a product that is similar, but not identical, to the products of its competitors. produces a product that is identical to the products of its competitors. faces a perfectly elastic demand curve for

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The fact that the firms in an oligopoly are
mutually interdependent means that each firm:
must consider the reactions of its
competitors when it sets the price for its
output.
produces a product that is similar, but not
identical, to the products of its
competitors.
produces a product that is identical to the
products of its competitors.
faces a perfectly elastic demand curve for
its product.
Transcribed Image Text:The fact that the firms in an oligopoly are mutually interdependent means that each firm: must consider the reactions of its competitors when it sets the price for its output. produces a product that is similar, but not identical, to the products of its competitors. produces a product that is identical to the products of its competitors. faces a perfectly elastic demand curve for its product.
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