What are the similarities and differences between pure monopoly and oligopoly?© BrainMass Inc. brainmass.com October 9, 2019, 8:50 pm ad1c9bdddf
In pure monopoly, there is only one provider for a product or service, whereas in oligopoly, market is dominated by a small number of sellers.
If a price war breaks out, oligopolists will produce and price much as a perfectly competitive industry would; at other times they act like a pure monopoly.
Oligopolists will display Interdependent decision-making. Interdependence means that firms must take into account likely reactions of their rivals to any change in price, output or forms of non-price competition. In monopoly, the producers did not have to consider a ...
What are the similarities and differences between pure monopoly and oligopoly?