Perfect Monopolistic

Indicators Monopoly Oligopoly

competition competition

Number of
many many one few
sellers

Number of
many buyers many buyers unspecified unspecified
buyers

Barriers to entry high high entry blocked low

positive if entry is
blocked and the
colluding cartel
Long run econ. holds together
zero zero positive
profit (This is unlikely
because the cartel
tends to fall
apart).

The products Identical or

Identical Differentiated Unique
firms sell differentiated

firm has market

power? none, price-
yes yes yes
taker

D curve facing downward- has a kink at the

firm downward-
horizontal sloping (market level of the
sloping
demand) prevailing price.

Growing
wheat, Microsoft,
growing manufacturin Cell phone
Example of Clothing stores,
apples, rice, g computers companies,
Industries restaurants
corn and airlines
automobiles

Price vs MC P = MC P>MC P>>MC P>MC