Question

What are the difference between monopoly, oligopoly, and competition?

Answer 1

Answer - Difference are -

1 - Monopoly has 1 firm , oligopoly has few firms but not 1 , competitive firm has large number of sellers and buyers

2 - Monopoly and oligopoly both earn positive economic profits in short and long run , competitive firm only earns normal profits

3 - In monopoly and oligopoly , firms are in condition to influence the price , in competitive market , firms are price taker and cannot influence the price

4 - In monopoly the product does not have any substitute , in oligopoly product can be differentiated , in competitive market products are homogenous and are perfect substitutes of each other