Mutual interdependence means that each firm in an oligopoly: considers the reactions of its rivals when it determines its pricing policy faces a perfectly inelastic demand for its product depends on the other firms for its markets depends on the other firms for its inputs

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Mutual interdependence means that each firm in an oligopoly CONSIDER THE REACTIONS OF ITS RIVAL WHEN IT DETERMINES ITS PRICE POLICY.
Oligopoly is a type of market structure in which there is limited competition because the market is shared by a small number of producer or seller. In this type of market structure, each firm has to consider the pricing policy of its competitors before setting its own price.