Mutual interdependence means that each oligopolistic firm

A) faces a perfectly elastic demand for its product.
B) must consider the reactions of its rivals when it determines its price policy.
C) produces a product identical to those of its rivals.
D) produces a product similar but not identical to the products of its rivals.

Mutual Interdependence

The economic concept where the outcome of one party's decision depends on the actions taken by other parties, particularly relevant in oligopolistic markets.

Oligopolistic Firm

A company that operates in an oligopoly, a market structure characterized by a small number of firms dominating the industry.

Price Policy

The strategic approach adopted by a company or government to set the price of goods or services, often aiming at achieving specific economic objectives.