Principles of Microeconomics / Unit 9 MIC 0820 short lesson, about 20 seconds
Interdependence
Captions available
The idea
In an oligopoly each firm's best choice depends on what its rivals do, and every firm knows it. That interdependence is the defining feature, and why no single model fits.
In practice
One carrier's price cut is answered by the others within days.
Where people slip
A competitive firm responds to the market, a monopolist to its demand; only an oligopolist responds to named rivals.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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