Principles of Microeconomics / Unit 9 MIC 0816 short lesson, about 20 seconds
Why Oligopolies Exist
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The idea
Oligopolies form where monopoly's barriers combine with differentiation, and where economies of scale leave room for a few firms: a market two or three times minimum efficient scale holds two or three.
In practice
Building a brand or a jet plant costs so much that few can try.
Where people slip
The cost curve of unit six decides the firm count here, as it did for monopoly.
Your place on the trail
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Unlocks
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