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
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. |
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