Difference Between Oligopoly vs. Monopoly Market Structures

Difference Between Oligopoly and Monopoly

Differences between Oligopoly and Monopoly are explained in the below table,

Product Features
(Across Producers)
No Substitutes
Industry Entry & Exit BarriersHigh Barriers to Entry.
But Not Impossible
Very High Barriers.
Nearly Impossible To Entry/Exit.
Industry CompetitionCompetitors Act In A Collaborative Manner
(Mutual Interdependent)
No Competition
Number Of Producers (Sellers)Few Large ProducersOnly 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 OutputCan Influence The Output With Collaborative MannerHas the Complete Control Over Output
Possibility To Earn Super Normal ProfitsPossibleHigh Possibility
Individual Producer’s Market ShareHighComplete Market Share
Producer’s Possibility To Reach Economies of ScaleHighVery High
Oligopoly vs Monopoly
Oligopoly vs Monopoly
Oligopoly vs Monopoly

Differences between Oligopoly and Monopoly are explained in the below points,

  1. Product Features of Oligopoly are Differentiated. But in a Monopoly, Product Features are Unique, and No Substitutes.
  2. 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).
  3. Competitors Act Collaboratively in Oligopoly (Mutual Interdependent). But in Monopoly, there is No Competition.
  4. There are only a Few Large Producers (Sellers) in Oligopoly. But comparatively, there is Only One Producer in Monopoly.
  5. 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.
  6. There is A Possibility of Earn Super Normal Profits in Oligopoly. But comparatively, it is High Possible in Monopoly.
  7. There is a High Ability for a Firm to Control the Output in Oligopoly. But Firm Has the Complete Control Over Output in Monopoly.
  8. Individual Producer’s Market Share is High in Oligopoly. But Comparatively, the Firm has the Complete Market Share in Monopoly.
  9. 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

Monopoly Market

Monopolistic Competition

Perfect Competition

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