Pure Competition: A very huge number of firms; uniform products; no rent controls: price takers; no entry barriers; no un-price competition.
Oligopoly: Few companies; uniform or distinguished goods; price controls constricted by mutual interdependence: a great deal of anti-price competition, especially product difference.
In each case, Oligopoly and pure competition differs.
- Supermarkets in hometown - Oligopoly is correct; Supermarkets in every area are few in the total amount.
- Steel industry - Oligopoly is correct; Companies are few; their goods are somewhat standardized.
- Kansas wheat farm - Pure Competition is correct; there is no price control; there is no non-price competition.
- Commercial bank - Oligopoly is correct; the facilities are as distinct as the bank can help them look.
- Automobile industry - Oligopoly is correct; Imports made the industry more competitive in the past two years, dramatically increasing American automakers ' market power.