Difference Between Oligopoly vs. Monopoly Market Structures
Difference Between Oligopoly and Monopoly
Differences between Oligopoly and Monopoly are explained in the below table,
| Features | Oligopoly | Monopoly |
|---|---|---|
| Product Features (Across Producers) | Differentiated | Unique No Substitutes |
| Industry Entry & Exit Barriers | High Barriers to Entry. But Not Impossible | Very High Barriers. Nearly Impossible To Entry/Exit. |
| Industry Competition | Competitors Act In A Collaborative Manner (Mutual Interdependent) | No Competition |
| Number Of Producers (Sellers) | Few Large Producers | Only One Producer |
| Market Power Of Individual Firm (Ability To Control The Price) | High Market Power. Can Influence The Price With Collaborative Manner | Very High. Has the Complete Control Over Price |
| Ability To Control The Output | Can Influence The Output With Collaborative Manner | Has the Complete Control Over Output |
| Possibility To Earn Super Normal Profits | Possible | High Possibility |
| Individual Producer’s Market Share | High | Complete Market Share |
| Producer’s Possibility To Reach Economies of Scale | High | Very High |
Differences between Oligopoly and Monopoly are explained in the below points,
- Product Features of Oligopoly are Differentiated. But in a Monopoly, Product Features are Unique, and No Substitutes.
- Industry Entry & Exit Barriers are High in Oligopoly (But Not Impossible). But comparatively, there are Very High Barriers To Entry/Exit in Monopoly (Nearly Impossible).
- Competitors Act Collaboratively in Oligopoly (Mutual Interdependent). But in Monopoly, there is No Competition.
- There are only a Few Large Producers (Sellers) in Oligopoly. But comparatively, there is Only One Producer in Monopoly.
- There is High Market Power in Oligopoly (Firms can Influence the Price with Collaborative Manner). But comparatively, it is Very High in Monopoly. Individual firms in Monopoly have Complete Control Over Price.
- There is A Possibility of Earn Super Normal Profits in Oligopoly. But comparatively, it is High Possible in Monopoly.
- There is a High Ability for a Firm to Control the Output in Oligopoly. But Firm Has the Complete Control Over Output in Monopoly.
- Individual Producer’s Market Share is High in Oligopoly. But Comparatively, the Firm has the Complete Market Share in Monopoly.
- There is a High Possibility for Individual Producers to Reach Economies of Scale in Oligopoly. But it is Very High in Monopoly.
Read More:
Market Structures
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
Monopoly Market
- Definition, Examples, and Characteristics of Monopoly Market
- Real Examples of Monopoly Market (in the USA, Canada, Australia, World)
- Important Characteristics / Causes of Monopoly Market
- Advantages and Disadvantages of Monopoly Market
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
Perfect Competition
