Mutual Interdependence Means That Each Firm in an Oligopoly

question 135

Multiple Choice

Mutual interdependence means that each firm in an oligopoly

• A) faces a perfectly inelastic demand for its product.
• B) considers the reactions of its rivals when it determines its pricing policy.
• C) depends on the other firms for its inputs.
• D) depends on the other firms for its markets.

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Definitions:

Commercial Impracticability

A legal doctrine allowing parties to suspend or terminate their contractual obligations when unexpected events fundamentally alter the nature of the contract and performance becomes unfeasibly burdensome.

Substantial Performance

A concept in contract law where a party has completed enough of the contract to warrant payment, though some minor elements may still need to be finished.

Construction Industry

A sector of the economy focused on the planning, designing, and building of infrastructure and buildings.

Frustration Of Purpose Doctrine

The Frustration of Purpose Doctrine is a legal principle allowing contract parties to be relieved from performing their obligations when an unforeseen event undermines the contract’s original purpose.