Distinguish between perfect oligopoly and imperfect oligopoly. Also explain the ‘‘interdependence between the firms’’ feature of oligopoly.

The basic points of difference between perfect oligopoly and imperfect oligopoly are stated below –


In an oligopoly market interdependence of firm exists because the price and level of output of one firm affects the price and level of output of the rival firms. So, the firms decide the price and output according to the prevailing market price.


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