Question

It is suggested that oligopoly promotes innovation more than do other market structures. Given what you have learned about the four different market structures presented in your text (Perfect Competition, Monopoly, Monopolistic Competition, and Oligopoly), discuss the reasoning that might explain where innovation comes from ___.

Answer 1

Oligopoly is the market where there are only less number of producers and sellers.It is difficult to enter in this.

Perfect competition there are large number of buyers and sellers ,entry is free.

Monopoly there will be only one seller,there is no substitute products.

Monopolistic competition there will be large number of producers and they sell different types of products.