Answer to Question #79187 in Economics of Enterprise for Shafee Kock

Question

Give an outline of the differentiating characteristics of a monopoly and a oligopoly market structure

Answer 1

A monopoly and an oligopoly are economic market structures where there is imperfect competition in the market. A monopoly market contains a single firm that produces goods with no close substitute, with significant barriers to entry of other firms. An oligopoly market has a small number of relatively large firms that produce similar but slightly different products. Again, there are significant barriers to entry for other enterprises.
In a monopoly, the seller can charge high prices for the goods because there is no competition. In an oligopoly, the prices are moderate due to the presence of competition. However, they are higher than they would be in perfect competition.
Source:
https://www.investopedia.com/ask/answers/121514/what-are-major-differences-between-monopoly-and-oligopoly.asp#ixzz5Lg6LegV6