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ClassOf1 Differences Similarity

ClassOf1 Differences Similarity

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The differences and the similarities between oligopoly and monopolistic completion as well as the conditions necessary for each of these market structures.
The differences and the similarities between oligopoly and monopolistic completion as well as the conditions necessary for each of these market structures.

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Published by: ClassOf1.com on Sep 14, 2009
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08/10/2015

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Sub: Economics

Topic: Micro Economics

Question: The differences and the similarities between oligopoly and monopolistic completion as well as the conditions necessary for each of these market structures.
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Monopolistic competition & the Oligopoly - In what ways is the Oligopoly different from monopolistic competition? In what ways are they alike? Discuss explaining the conditions necessary for each of these market structures, give 2 examples of each

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Monopolistic competition & the Oligopoly In what ways is the Oligopoly different from monopolistic competition? In what ways are they alike? Discuss explaining the conditions necessary for each of these market structures, give 2 examples of each Difference between Oligopoly & Monopolistic competition: Oligopoly is a market structure with the existence of few large sellers dominating the industry. Whereas, monopolistic competition is a market structure with large number of sellers each with relatively small market share.

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Sub: Economics

Topic: Micro Economics

One of the important features of oligopoly market structure is the existence of barriers to entry & exit. But in monopolistic competition, there are no barriers to entry & exit. In oligopoly the products may be either homogenous or differentiated but in monopolistic competition, the products differentiation exists & close substitutes are available in the market. I t is possible for the oligopolies to earn abnormal profits even in the long run due to barriers to entry. Whereas, in monopolistic competition, the firms earn only normal profits in the long run due to easy entry & exit. Mutual interdependence of firm exists in oligopoly market & Oligopolies take into account the reactions of other firms but monopolistic competitors do not consider the rivals action & react accordingly.

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ClassOf1 provides exert guidance for College, Graduate and High school homework and live online tutoring on subjects like Finance, Marketing, Statistics, Economics and others. Check out more solved problems in our Solution Library.

www.classof1.com

*The Homework solutions from ClassOf1 are intended to help the student understand the approach to solving the problem and not for
submitting the same in lieu of your academic submissions for grades.

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