Question

Distinguish between Oligopoly and Monopoly.

Differentiate between an oligopoly market and a monopoly market.

How is an oligopoly market different from the monopoly market?

Answer 1

Sr. No.	Basis	Oligopoly market	Monopoly market
1.	Meaning	Oligopoly is a market structure in which a small number of companies, sellers offer either homogenous or heterogeneous products to a large number of purchasers.	Monopoly is a market in which a single vendor sells his unique product to a large number of customers.
2.	Selling cost	Sellers in an oligopoly incur heavy selling costs.	Seller in a monopoly incurs a minimum on the selling cost.
3.	Entry of firms	Entry is restricted due to high barriers like large capital, patents, or brand dominance.	Entry is completely blocked; legal, financial, or structural barriers prevent new firms.
4.	Control over price	Each firm has some control but must consider the potential reaction of competitors (interdependence).	The monopolist has complete control over price, limited only by consumer demand.
5.	Product differentiation	Products in an oligopoly are either differentiated or homogeneous depending on the market type.	In a monopoly, the product is unique with no close substitutes available.