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What does 'mutual interdependence' refer to?

Options
A.a. A condition in which the actions of one firm will have an effect on other firm/s
B.b. A condition in which one firm will copy another firm's behaviour
C.c. A condition in which three firms have 99% of the market share in an oligopoly market
D.d. A condition in which two firms will collude in order to shut down a third competitor firm
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To approach the concept, I’ll examine what each option implies about mutual interdependence in an interfirm context. Option a: 'A condition in which the actions of one firm will have an effect on other firm/s' — This captures the core idea of mutual interdependence: firms’ outcomes are linked because what one does can affect others. It emphasizes interconnec......Login to view full explanation

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