148 Business Economics -1 (BMS, BAF, BFM, BBI - Sern ~ (3) Monopoly and Oligopoly si. Basis of Monopoly Oligopoly No. Difference 1. _ | Number of sellers There is a single seller or | There are few | producer of a commodity | producers or sellers | (more than one) of the | | 2. Product differentiati Product differentiation is | Product differentiation ___| not possible __| is possible ‘Advertisement and These activities do not __| These activities have sales promotion play important role an important role to . ..p aetivities eae _. | playin market _____ ml 4 | Profit Producers and sellers | Producers and sellers generally gel super generally get normal profit comparatively less f ine ___| profit (4) Monopolistic and Imperfect competition Basis of Monopolistic Imperfect | __difierence__| _competition competition Nature of Market Ircombines the It combines the situation characteristics of characteristics of monopoly and competition | monopoly and perfect sa = competition Product Product of each producer Product of each or seller is slightly different | producer or seller is to each other. Quite different to each | aS Le oe other a ‘Advertising and | The cost plays ai The cost do not play an Transportation cost important role in the important role in the eI ______[ market. market (5) Monopoly and Monopolistic Market tn “Si. | Baste of ‘Monopoly Monopolistic Ne. | difference Market 1 | No. of Sellers There is only one producer | There is large number of or sellers of acommodity. | seller and buyer of a ake commodity Product “There is no question of | Product of each seller is differentiation product differentiation slightly different to each ~_| other. Fauyainaw finns | New firs cannot enter | There is fee enty and relonee into the market exit ofthe firms. ra. | Competition There is no question of __| There is non-price competition competition ls. | Price pol Monopolist can adopt Ail the firms follow their Des’ Uniform price policy or _| individual price policy. Price discrimination policy. ites of 8 “There is no close substitute | There are many close a et a of a commodity. substitute of the commodityMarket 149 (6) Pe, [ sr yest Com tition and Imperfect competition No. Basis of Perfect Imperfect TK ifference Campatitios Competition * Nu and Seat Buyers [Number of Baer | Number of Byers and a i and Sellers are very — | are large but comparative! | "ee lay 2. | Produay ~-———| large. Product of all the Product of all the sellers is sellers is, different from each other [el ornterni, 3. [En : Fig 2hd Exit ofthe There is no restriction | Entry and Exitof the Firms is on the entry and exit | comparatively difficult, fo oe 4, Cc + ‘Snttol over prices | an individual firm. | An individual firm can influence Cannot control the | the price of a product toa — Brice of a product. certain extent. 5. | Elasticity of Demand | Demand of product | Demand of product for an for an individual firm | individual fier is Highly elastic, is Unitary elastic. 6. Knowledge of market | Ail the buyers and All the buyers and sellers have condition fillers have complete | Partial knowledge of a rearkoe knowledge of a condition Market condition (7) Monopoly and Duopoly SI. Basis of Monopoly Duopoly No. | difference 1. | Number of sellers. | There is only one salar in | There are two sellers of a the market commodity. _ 2. | Product There is no question of | Generally the product of bath Differentiation | Product Differentiation | the wie is same but it may be different in some tases. 3. | Price Policy The monopolist may Generally both the sellers adopt single price policy | adopt uniform price policy but or price discrimination of | it may be different in come the product. cases. 4. | Competition There is no question of Both the sellers adopt non- competition Price competition measures. (8) Oligopoly and Duopol sl. Basis of Oligopoly Duopoly No.| difference few sellers of a commodity in| Two sellers of commodity 1. | Number of sellers a ow sellers pais fall the sellers may be | Product of both the seller is 2. | Product aoe ordifferentiated. —_| generally identical but in some cases, it may be different. 7 Pals llers adopt -_—_| Price policy of both the 3. | Price Policy Seneal ol hes sellers may be identical or en ae ae different