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In which of the following market structures is there clear-cut mutual interdependence?

A. Perfect competition.
B. Monopoly.
C. Monopolistic competition.
D. Oligopoly.

1 Answer

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Final answer:

Oligopoly is the market structure in which there is clear-cut mutual interdependence.

Step-by-step explanation:

In the given options, the market structure that exhibits clear-cut mutual interdependence is Oligopoly. Oligopolies are characterized by a small number of large firms dominating the market and possessing significant market power. These firms are interdependent on each other, meaning that the actions of one firm directly affect the others.

For example, if one firm decides to change its price or output level, the other firms will be directly impacted and may need to adjust their strategies accordingly.

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