Difference Between Oligopoly and Monopolistic Competition

Differences between oligopolistic competition and monopolistic competition The oligopolistic market structure is a market structure that occupies the majority of industry output, with a few large producers in the industry. Share it. The monopolistic competition is a market structure including a large number of sellers, each seller is relatively small, and the market share is small.

Difference between oligopolistic market and monopolistic market structure Market structure is the interrelated characteristics of the market such as the number of companies, the level and form of competition, the degree of product differentiation (Business Dictionary, 2012). In this paper, we focus on two points, monopolistic competition and oligopolistic market, by discussing these differences and the impact on customers.

The most obvious difference is the number of companies involved. With oligopoly, only a few companies are on the market. In contrast, many small companies are participating in monopolistic competition. Oligopolies are usually considered to consist of 2 to 20 companies. The smaller the number set, the larger the number. There is no exact number of companies to distinguish between oligopolistic competition and oligopolistic competition.

Oligopoly is a market structure that includes a relatively small number of relatively large companies, and brings serious obstacles to the entry of other companies. Monopolistic competition is a market structure involving a relatively small number of relatively small enterprises that enter and leave relatively freely. The distinction between oligopolistic competition and monopolistic competition seems obvious, but this is not necessarily the case. More or less: The main difference between oligopolistic competition and monopolistic competition is that the relative size and market power of each company is based on the number of competitors in the market. However, there is no clear boundary between these two market structures. Since it is hard to say that numbers like 50 companies are dividing the boundary line, 50 companies become oligopolies and 51 companies become exclusive competitors.

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