Purchase Solution

Monopolies and Oligopolies

Not what you're looking for?

Ask Custom Question

What are some similarities and differences between monopolies and oligopolies? How would you classify Microsoft? How would you classify the power industry in your area? Explain your reasoning.

Purchase this Solution
Solution Summary

What are some similarities and differences between monopolies and oligopolies?

Solution Preview

Oligopoly and monopoly have some similarities, both tend to be relatively large and possess significant market control, but also have a few important differences, oligopoly market has more than one firm. The dividing line between oligopoly and monopoly, however, can be blurred due to the closeness of substitutes and the inclination of oligopoly firms to collude.

Few differences:

One or Few: The primary difference between oligopoly and monopoly is that monopoly contains a single seller, whereas oligopoly has two or more sellers. Such a difference might seem to provide a clear separation. But not necessarily.

Substitutes: In some cases, the difference between oligopoly and monopoly is blurred by the closeness of substitutes. A monopoly produces a good with NO close substitutes. An oligopoly firms produces a good with a small number of relatively close substitutes.

However, the oligopoly-monopoly difference is blurred if an oligopoly firm pursues product differentiation to such an extent that it creates a product with no close substitutes. As such, the ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Monopolies, Monopolistic Competitions, and Oligopolies

    519857 Monopolies, Monopolistic Competitions, and Oligopolies Three market structures were introduced in this unit, and all three possess similarities and differences.

  • Identifying Market Structure of a Firm

    Monopolies attract government regulation and consumer anger (just ask Microsoft). Small oligopolies (such as Coke, Pepsi, and Cadbury-Schweppes) make plenty of money and avoid the constant attention of the regulators.

  • Oligopolies and Monopolies

    563764 Oligopolies and Monopolies Are monopolies and oligopolies always bad for society? Please provide real world examples of where this may be the case. Hello; It is my pleasure to be assisting you once again.

  • Monopolies

    What are some advantages and disadvantages of monopolies? Give some examples of monopoly type companies? What are some key barriers to entry and exit for monopolies and oligopolies?

  • Market structures: Oligopolies and Monopolies

    509361 Market structures: Oligopolies and Monopolies Please assist with discussing oligopoly and monopoly in terms of market structure. Please provide references so I can read more.

  • Comparing different market structures

    348381 Market structure Address the differences between monopolies, monopolistic competitions, and oligopolies. Please refer attached file for solution in tabular form. Market Characteristics 1.

  • Perfect price discrimination

    Oligopolies exist for the same reasons as monopolies: economies of scale and barriers to entry. These are generally present to a lesser degree in an oligopoly than in a monopoly.

  • Monopolies and Oligopolies Explored

    Discuss this question in terms of monopolies and oligopolies.

  • Multiple choice questions

    A) All monopolies are good. B) All monopolies are bad. C) Most natural monopolies are government regulated or government owned. D) None of these statements is true. 15.

  • monopoly, oligopoly, and cartel

    What are the welfare effects of monopolies and oligopolies? The welfare effect of the monopoles and oligopolies is negative.

View More Related Solutions