1. In what sense is there oligopolistic interdependence in the basic dominant-firm model, in which there truly is just one single dominant firm? Explain your reasoning.
2. If a dominant firm cannot maintain a cost advantage over other fringe firms in the industry, why might we anticipate that eventually its "dominance" might disappear? (What would happen to the number of fringe producers if the dominant firm were to earn economic profits-and then what would happen over time to the dominant firm's profit?)