For firms in an oligopoly to be interdependent they must?

For firms in an oligopoly to be interdependent, they must recognize that their pricing and output decisions directly affect one another. Each firm's behavior influences the market dynamics, prompting others to adjust their strategies accordingly to maintain competitive advantage. This interdependence often leads to strategic decision-making, such as collusion or price wars, as firms seek to optimize their outcomes in response to their rivals’ actions. Ultimately, the actions of one firm can significantly impact the market as a whole.