ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Under Oligopoly, since a few firms hold a significant share in the total output of the industry, each firm is affected by the price and output decisions of rival firms. Therefore, there is a lot of interdependence among firms in an oligopoly.

Detailed explanation-2: -An oligopoly is characterized by a few firms that have control over the price and output level of a market.

Detailed explanation-3: -In an oligopoly market, there is a small number of big firms. Accordingly, there is a high degree of mutual interdependence, implying that price and output policy of one firm has a significant impact on the price and output policy of the rival firms in the market.

Detailed explanation-4: -An oligopoly is a market structure that has a few large firms which produce homogeneous but differentiated products. In an oligopoly market structure, one of the key characteristics is the interdependence of firms on decision making.

Detailed explanation-5: -Firms operating under conditions of oligopoly are said to be interdependent, which means they cannot act independently of each other. A firm operating in a market with just a few competitors must take the potential reaction of its closest rivals into account when making its own decisions.