There are mainly 4 types of markets in economics- perfect
competition, monopolistic, oligopoly, monopoly.
All these markets are very different in nature, size, etc. Let’s
discus few points of difference between these markets.
Perfect competition, where there are large number of small
firms competing each other. There is unrestricted entry in market. All the
products are homogeneous i.e. identical to each other.
Monopolistic market, where there are also large number of
small firms competing against each other nut with non-identical, heterogeneous
products. There is unrestricted entry in market.
Oligopoly market, where the market is dominated by very few
firms. Product can be differentiated as well as non-differentiated. There is
restricted entry in market.
Monopoly market, where one single firm controls the whole
market structure. There is a unique product. Entry of mew firms is unrestricted
or completely blocked. This firm is price independent. They keep price whatever
they wish like.
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