Answer to Question #176354 in Microeconomics for Alex

Question

What are examples of a monopolistically competitive firm, oligopoly, and monopoly in your local area? In your example, please relate to the market characteristics of each of the market structures?

Please. Details, thank you.

Answer 1

Monopolistically competitive firms are most common in industries where differentiation is possible, such as: the restaurant business, hotels and pubs, general specialist retailing.

Oligopoly arises when a small number of large firms have all or most of the sales in an industry. Examples of oligopoly abound and include the auto industry, cable television, and commercial air travel.

A monopoly is a firm who is the sole seller of its product, and where there are no close substitutes. An unregulated monopoly has market power and can influence prices. Examples: Microsoft and Windows, DeBeers and diamonds, your local natural gas company.