Monopolies and oligopolies

Question

what are the differences and or similarities between monopolies and oligopolies?

Answer 1

lol I did this is class last week!

Monopoly

1.One firm industry

2.selling a unique product (not very close to substitutes)

3.absolute control over supply over a certain price range

4.Entry is restricted by law or very difficult in practice

Oligopoly

1.Relatively few number of firms (more than 2 less than many)

2.Product can be standardised or differenciated

3. Have some anount of control over price

4.Relatively difficult to enter

Answer 2

Monopolies- ONly one company controls the whole market.  There is no competition at all.  So they're the only company in the area...and they can control prices.

Oligopolies- I'm not toally sure, but I think its a few companies control a market.  IF there is any competition its not as big as it is under perfect competitive market.  And oligopolies will usually all make similar or same products.  Not much competition and prices are not perfectly competitive- they're usually higher than PC (perfectly competitive price).

I suggest you look up these terms some more.  Wikipedia is a good resource.

Answer 3

Monopolies and oligopolies are similar in the sense that they both sell differentiated products and there are barriers to entry into the market.

A monopoly means one firm dominates the market, but an oligopoly means a few firms dominate the market. An oligopoly has less control over price than a monopoly does, though. If one firm in the market increases its price, more consumers will buy from other firms.