Monopoly vs Oligopoly

Monopoly markets are dominated by a single seller and he has the ultimate power to control the market prices and decisions and in this type of market, customers too have limited choices whereas, in oligopoly markets, there are multiple sellers and there is a huge and never-ending competition amongst them for standing out amongst the others in the same.

Differences Between Monopoly and Oligopoly

Monopoly vs Oligopoly Infographic

Key Differences Between Monopoly and Oligopoly

oligopoly

Comparative Table

MonopolyOligopoly
A market structure where the market is dominated by a single seller of the goods and the servicesA market structure where there are numerous sellers in the market selling close substitute of the goods. The market is generally dominated by large industry
The price is controlled by the seller since there is no competition in the marketThe price is determined by the competition in the market whereas the price is determined by keeping in mind the actions of the competitor firm
In this market structure is a high barrier to entry and exit in the market as the industry is generally capital intensiveCapital IntensiveCapital intensive refers to those industries or companies that require significant upfront capital investments in machinery, plant & equipment to produce goods or services in high volumes and maintain higher levels of profit margins and return on investments. Examples include oil & gas, automobiles, real estate, metals & mining.read more and is difficult to enter. There are also economical institutional or legal restriction of this kind of industryIn this market structure, the barrier of entry is generally high because of economies of scale in the industry
A firm is a price makerA firm is a price takerPrice TakerA price taker is an individual or firm with no control over the prices of goods or services sold because they usually have small transaction sizes and trade at prevailing market prices. Individual investors act as price takers in the stock market.read more
Kinked Demand curveThe downward-sloping demand curve
Electricity, Railways, water diamonds are examples of the monopoly market.FMCG, automobile are the examples of oligopoly industry
No competition exists as there is a single seller of the goodsIntense or high competition exists among the sellers

This has been a guide to Monopoly vs Oligopoly. Here we discuss the top differences between monopoly and oligopoly along with infographics and comparison table. You may also have a look at the following articles –

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