What Are Mutual Interdependence and Oligopolies?
Last Updated Mar 29, 2020 6:11:07 PM ET
Mutual interdependence is a characteristic of an oligopoly. An oligopoly is a form of market. In oligopolies, the number of oligopolists, the sellers or producers, is limited. The word "oligopoly" comes from medieval Latin, where "oligo" means "a few" or "small" and "poly" means "to sell."
Mutual interdependence is when two or more entities depend on one another. In the case of an oligopoly, companies within a market are mutually interdependent. Each company has to consider the consequences of a change in strategy on competitors within that market. Oligopolists try to maximize profit. They work together to make it difficult for others to enter their market.
More From Reference
What Is the Federal Minimum Wage?
What Is the Financial Independence, Retire Early Movement — and Has the Pandemic Changed It?
4 Investing Lessons We Can Learn From Warren Buffett's Stock Portfolio
Here's How a Pre-IPO Investment Helps You Fund Startups
Where to Buy Cryptocurrency: A Guide for Beginners
The Question of Congressional Term Lengths and Limits