Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called: mutual dependence. mutual interdependence. monopolistic behavior. profit-maximization behavior.

Option B is correct one.

Mutual interdependence

Explanation:

Each oligopolistic firm recognizes that it must take into account the behavior of its competitors when it makes pricing decisions. This recognition is called mutual interdependence.

Mutual interdependence is a term in which a group of oligopolies all benefit from one another. They can benefit through market share, location in terms of geography, product differentiation, price allocation, etc.

previous business sales - c.

answer; is usually (less than) the socially optimal level of consumption;