Oligopoly
Market dominated by few large suppliers.
Real World
The UK supermarket sector is an oligopoly dominated by Tesco, Sainsbury's, Asda, and Morrisons — when Tesco launches a price promotion, rivals almost always respond within days, illustrating price interdependence.
Exam Focus
Use the term 'interdependence' explicitly when analysing oligopoly behaviour — it signals understanding of why firms watch rivals before changing price.
How well did you know this?