Question

Give three differences between Perfect Competition Market and Oligopoly market.

Answer 1

Sr. No.	Basis	Perfect Competition	Oligopoly Market
1.	Number of sellers	A large number of sellers operate in the market.	Only a few large firms dominate the market.
2.	Product differentiation	Products offered are identical or homogeneous.	Products differ in terms of quality, colour, branding, or other features.
3.	Pricing power	Firms do not have control over prices and act as price takers.	Firms enjoy considerable control over pricing and act as price makers.