Question

What are the differences between monopoly, oligopoly and monopolistic competition?

PC/Monopoly/Monopolistic Competition/Oligopoly – What are the characteristics

Three different models of Oligopoly

Cartel

Collusion

Answer 1

Ans:

1) Difference between monopoly, oligopoly and monopolistic competition

Comparison	monopoly	oligopoly	monopolistic competition
Meaning	Monopoly is a market structure in which only one seller sells unique products.	Oligopoly is a market structure in which there are small number of large sellers.	Monopolistic competition is a mixture of monopoly and perfect competition.
Product types	Unique	identical	differentiated
Number of players	one	few	many
Nature of competition	No competition	little competition	fairly good competition
Prices	High prices are charged	fair prices are charged	depends on product differentiation
Restrictions to entry	strong barriers on the entry of new firms such as legal,resources control.	economies of scale	new firms can enter and exit the market but only in the long run.