Market Structures

There are two main market structures in the market known as monopolistic competition as well as oligopoly. They fall between the extreme of real competition and pure monopoly. The two structures are vital because they provide descriptions of companies and industries that are found worldwide. The market structures differ as each one has different characteristics associated with either monopoly or oligopoly.

Oligopoly Market Structure

The first characteristic associated with oligopoly is there that there are a few, large companies that dominate the market. Another element is the production of identical commodities that are similar as well as significant obstacles to entry. The market structure is associated with interdependence of decisions regarding production within the market. Such a market where a small number of companies control the supply to a whole market (Papandreou 1999).Each company produces a similar product. The market structure does not only rely on the larger...
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