Explain the implication of the following in an oligopoly market.(a)Interdependence between firms.(b)Non price competiton

Interdependence between the firms: The implication is the formation of a cartel or an association. If in an oligopoly a person is going to take a decision to reduce the price of the commodity that he is selling this decision will not only affect his sales but also the other producer's sales thus the other competitors will also be quick to react and will, in turn, reduce the price. That is the reason alloys a collusive oligopoly is encouraged so the price and output wise rigidity is maintained and the competition is all about how the producers through some other features persuade the people to buy their product.ard to the price so to attract the consumer various selling techniques like discounts, rebates, free gifts are given so that the sales increase.

Non - Price competition - The implication is huge selling cost. Since price rigidity is present competition cannot be there with reg