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.

Mutual Interdependence

A situation in which the actions of one firm significantly affect the outcomes of other firms in the market, commonly seen in oligopolistic industries.

Perfectly Inelastic Demand

A situation where the quantity demanded does not change in response to changes in price.

Pricing Policy

A company's approach to setting the prices for its products or services, often based on costs, market demand, competition, and other factors.