In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies?
A) Pure monopoly.
B) Oligopoly.
C) Monopolistic competition.
D) Pure competition.

Question

Quizplus · Accepted Answer

Oligopoly is the market structure in which there are only a few firms and they have significant market power, which leads them to be mutually interdependent in their price-output decisions. The decisions made by one firm will necessarily impact the other firms in the industry. In contrast, pure monopoly and pure competition do not involve this level of interdependence, while monopolistic competition involves some degree of interdependence but not as much as oligopoly.

In Which of the Following Market Structures Is There Clear-Cut