1)Explain in detail how mutual interdependence impacts oligopoly markets.

2)Anti-trust policy are designed for which of the following?

A. Give monopoly as much profit as they want to make

B. Distribute the profits of an industry among its firms

C. Ensure competition among firms in the industry

D. Regulate large firm so that they do monopolize their market

1)Mutual interdependence impacts oligopoly markets by affecting their decisions such as advertising, output and pricing. i.e., any action that a firm takes will significantly affect the other firms and would have a considerable impact on the market conditions. Mutual interdependence ensures there is no single firm that can fix its output decisions and price without considering the possible reaction of other firms in the market.

2)The correct answer is C) Ensure competition among firms in the industry.

The purpose of designing anti-trust policies is to break the dominance of monopolies by encouraging competition in the market through rules and regulations. Anti-trust policies like the Clayton Act, the Sherman Anti-trust Act, and the FTC Act, have played a significant role in controlling the monopoly of firms.