Asked by Louie Allard on Jul 23, 2024
Verified
Mutual interdependence would tend to limit control over price in which market model?
A) monopolistic competition
B) pure competition
C) pure monopoly
D) oligopoly
Mutual Interdependence
A situation where entities are dependent on each other to some extent, highlighting the interconnected nature of their activities or survival.
Monopolistic Competition
A market structure characterized by many firms selling products that are similar but not identical, allowing for significant differentiation among competitors.
Oligopoly
A market configuration where the market is dominated by a few firms, resulting in restricted competition.
- Recognize the concept of mutual interdependence and its effect on price control in different market models.
Verified Answer
EL
emily lojanoJul 27, 2024
Final Answer :
D
Explanation :
Mutual interdependence, where the actions of one firm significantly impact the others, is a characteristic of oligopoly markets. In such markets, a few firms dominate, and each must consider the potential reactions of its rivals when setting prices, limiting their control over price.
Learning Objectives
- Recognize the concept of mutual interdependence and its effect on price control in different market models.