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Question
What is the difference between perfect competition and oligopoly?
Distinguish Between
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Solution
| Sr. No. | Basis | Perfect Competition | Oligopoly |
| 1. | Number of sellers | Perfect competition has many sellers/firms. | It has a few dominant sellers/firms. |
| 2. | Product differentiation | Products sold by different firms are identical. | Oligopolies may offer differentiated products. |
| 3. | Entry & Exit | Perfect competition has no barriers to entry or exit. | Oligopolies often have significant barriers. |
| 4. | Market Power | Firms in perfect competition are price takers. | Firms in oligopoly are price makers. |
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