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OLIGOPOLY

Oligopoly is the middle ground between monopoly and capitalism. An oligopoly is a small group
of businesses, two or more, that control the market for a certain product or service. This gives
these businesses huge influence over price and other aspects of the market. Since it is the
middle ground, oligopoly examples are abundant in our economic system today.
MONOPOLY
A monopoly is exclusive control of the market by one business because there is no other group
selling the product or offering the service. A true monopoly rarely exists because if there is no
competition, business will increase the price while reducing output to increase profits.
Antitrust laws keep this type of market condition from existing. A natural monopoly exists
where having more than one supplier is inefficient, like in public utilities, but these are regulated
by the government. Not only does a monopoly cause higher prices; it can also lead to inferior
products and services.
PERFECT COMPETITION
economic theory, perfect competition (sometimes called pure competition) describes markets
such that no participants are large enough to have the market power to set the price of a
homogeneous product. Because the conditions for perfect competition are strict, there are few if
any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say
for commodities or some financial assets, may approximate the concept. As a Pareto
efficient allocation of economic resources, perfect competition serves as a natural benchmark
against which to contrast other market structures.
GOVERNMENT REGULATION OF MARKET

A regulated market or controlled market, is a market where the government controls the forces
of supply and demand, such as who is allowed to enter the market or what prices may be
charged.
[1]
It is common for a regulated market to control claimed natural monopolies such as
aspects of telecommunications, water, gas and electricity supply. Often regulated markets are
established during the partial privatisation of government controlled utilityassets.
A variety of forms of regulations exist in a regulated market. These include
controls, oversights, anti-discrimination, environmental protection, taxation andlabor laws.
In a regulated market, the government regulatory agency may legislate regulations that
privilege special interests, known as regulatory capture.






MONOPOLY
A monopoly (from Greek monos (alone or single) + polein (to sell)) exists when a specific
person or enterprise is the only supplier of a particular commodity (this contrasts with a monopsony which
relates to a single entity's control of a market to purchase a good or service, and with oligopoly which
consists of a few entities dominating an industry).
[2]
Monopolies are thus characterized by a lack of
economiccompetition to produce the good or service and a lack of viable substitute goods.
[3]
The verb
"monopolize" refers to the process by which a company gains the ability to raise prices or exclude
competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has
significant market power, that is, the power to charge high prices.
[4]
Although monopolies may be big
businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise
prices in a small industry (or market).
[5]

OLIGOPOLY
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists).
Oligopolies can result from various forms of collusion which reduce competition and lead to higher costs for consumers.
[1]

With few sellers, each oligopolist is likely to be aware of the actions of the others. The decisions of one firm therefore
influence and are influenced by the decisions of other firms. Strategic planning by oligopolists needs to take into account the
likely responses of the other market participants.
PURE COMPETITION

In economic theory, perfect competition (sometimes called pure competition) describes markets such that no
participants are large enough to have the market power to set the price of a homogeneous product. Because the
conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers
in some auction-type markets, say for commodities or some financial assets, may approximate the concept. As
a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which
to contrast other market structures.

GOVERNMENT REGULATION OF MARKET

A regulated market or controlled market, is a market where the government controls the forces of supply and
demand, such as who is allowed to enter the market or what prices may be charged.
[1]
It is common for a regulated
market to control claimed natural monopolies such as aspects of telecommunications, water, gas and electricity
supply. Often regulated markets are established during the partial privatisation of government controlled utilityassets.
A variety of forms of regulations exist in a regulated market. These include controls, oversights, anti-
discrimination, environmental protection, taxation andlabor laws.
In a regulated market, the government regulatory agency may legislate regulations that privilege special interests,
known as regulatory capture.