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four market types

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Part 1
Summarize the differences between the following four market types.
1. Monopoly
2. Oligopoly
3. Perfect Competition
4. Monopolistic Competition

Part 2
Provide a general explanation of how businesses may maximize profits within each of the aforementioned market types.

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https://brainmass.com/economics/regulated-industries/market-types-291250

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Answer:
Summarize the differences between the following four market types.
1. Monopoly
2. Oligopoly
3. Perfect Competition
4. Monopolistic Competition
The market is mainly divided in two types one is the imperfect competition and the other is the perfect competition. Monopoly, oligopoly and monopolistic competition are the types of imperfect competition. Here monopoly is the extreme case of imperfect competition. Under this market there is a single seller that only produces products in the industry and there is no industry that even produces the close substitute of the firm under monopoly. Firms under monopoly are price makers. Barrier to entry in this market is extremely tight. Examples of monopoly are, pharmaceuticals industry with patent rights, government regulated public companies etc. Apart from these two examples it's very difficult to find out a monopoly market in the present time. Oligopoly is a type of imperfectly competitive market that includes few sellers (as few as 2 and as large as 10 to 15 firms). Here each firm in the industry has the capability to affect the market price. Barrier to entry in this market is high because of ...

Solution Summary

The four market types are compared and contrasted.

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