Difference Between Monopolistic Competition vs. Oligopoly
Difference Between Monopolistic Competition and Oligopoly
Differences between Monopolistic Competition and Oligopoly are explained in the below table,
| Features | Monopolistic Competition | Oligopoly |
|---|---|---|
| Product Features (Across Producers) | Highly Substitutable Highly Similar But Not Identical | Differentiated |
| Industry Entry & Exit Barriers | Easy Industry Entry & Exit | High Barriers To Entry But Not Impossible |
| Industry Competition | High | Competitors Act In A Collaborative Manner (Mutually Interdependent) |
| Number Of Producers (Sellers) | Large No Of Producers | Few Large Producers |
| Market Power Of Individual Firm (Ability To Control The Price) | Has Low Control Over Price | High Market Power. Can Influence The Price With Collaborative Manner. |
| Ability To Control The Output | Has Low Control Over Output | Can Influence The Output With Collaborative Manner. |
| Possibility To Earn Super Normal Profits | Low Possibility | Possible |
| Individual Producer’s Market Share | Low | High |
| Producer’s Possibility To Reach Economies of Scale | Low | High |
Differences between Monopolistic Competition and Oligopoly are explained in the below points,
- Product Features of Monopolistic Competition are Highly Substitutablem Highly Similar, But Not Identical. But in an Oligopoly Product Features are Differentiated.
- Industry Entry & Exit Barriers are Easy in Monopolistic Competition. But comparatively, there are High Barriers To Entry in Oligopoly (But Not Impossible to Enter).
- Industry Competition is High in Monopolistic Competition. But in Oligopoly Competitors Act in a Collaborative Manner (Mutually Interdependent).
- There are a Large Number of Producers (Sellers) in Monopolistic Competition. But comparatively, there are Few Large Producers in Oligopoly.
- There is Low Market Power of an Individual Firm (Low Ability To Control The Price) in Monopolistic Competition. But comparatively, it is High in Oligopoly. Individual firms in Oligopoly can Collaboratively influence The Price.
- There is a Low Possibility of Earning Super Normal Profits in Monopolistic Competition. But it is Possible in Oligopoly.
- There is a Low Ability for a Firm to Control the Output in Monopolistic Competition. But it is Able in Oligopoly with Collaborative Manner.
- Individual Producer’s Market Share is Low in Monopolistic Competition. But Comparatively, it is High in Oligopoly.
- There is a Low Individual Producer’s Possibility of Reach Economies of Scale in Monopolistic Competition. But it is High in Oligopoly.
Read More:
Market Structures
Monopolistic Competition
- Overview, Definition, & Features of Monopolistic Competition
- Main Characteristics / Causes of Monopolistic Competition
- Real Examples of Monopolistic Competition (in USA, Canada, World)
- Advantages and Disadvantages of Monopolistic Competition
Oligopoly Market
- Overview, Definition, Types & Features of Oligopoly Market
- Real Examples of Oligopoly Market (in the USA, Canada, World)
- Seven Important Characteristics of Oligopoly Market
- Advantages and Disadvantages of Oligopoly Market
Perfect Competition
- Overview, Definition, & Features of Perfect Competition
- Main Characteristics / Causes of Perfect Competition
- Real Examples of Perfect Competition (in USA, Canada, Australia, World)
- Advantages and Disadvantages of Perfect Competition
Monopoly Market
