Chapter 9, Problem 22AA

To determine

To state: Interdependence aspect of oligopoly.

Answer to Problem 22AA

Oligopoly is a condition where there are less sellers for a specific product or service.

Explanation of Solution

Oligopoly refers to the market structure in which there are few sellers and thus all of them exercise a significant influence in the market. It is a form of imperfect competition. Interdependence is an important aspect in an oligopoly market. If any of the selling firms make a slight change in their product prices, it will directly hamper their rivals and they, in return, would change their prices too to sustain the market.

Economics Concept Introduction

Introduction: Oligopoly is the market condition in which there are less sellers and they have a considerable control in the market.