A Monopoly Market – Assignment Example
The paper "A Monopoly Market " is a worthy example of an assignment on macro and microeconomics. In economics, perfect competition market constitutes low entry and exit barriers, homogeneity of products, perfect knowledge and restrictions on the influence of single buyers. On the other hand, in monopolistic competition markets, there is no entry of new firms into the market, a single firm regulates prices, and there is no competition. Many producers sell products that are differentiated from others and there are few barriers to entry and exit. In monopolistic markets, all firms produce similar products but are not substitutable perfectly. At the same time, all firms are able to enter the new markets as long as the profits are attractive. On the other hand, oligopoly markets only allow one firm to control over the market. Hence, the firms offer an identical product and services to consumers in order to create a high amount of interdependence and competition. A monopoly market exists when a specific firm is the only supplier of a given commodity in the market. Hence, there are no economic competition and substitutes of products in the market. On the other hand, a number of producers and sellers dominate an oligopoly market. All the firms available in the market dictate the prices in the market in order to enhance competition of goods. In an oligopoly, there is substitute since there is a wide range of different outcomes.