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What's the difference between a Monopoly and Oligopoly market?

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User Urizen
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1 Answer

7 votes

Step-by-step explanation:

The main difference between monopoly and oligopoly is in the number of firms under consideration.

In Monopoly, the market witness a situation in which one company alone dominates; in other words, this company produces goods or services without having any close competitors.

While in Oligopoly, not just one but a small group of companies act as the dominant players in the market even though they may produce slightly different products; they thus influence the market a lot reducing the chances of new competitors.

answered
User Dee
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8.6k points
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