Monopoly
This is where there is a single producer in the market. Features:
- One producer is able to charge relatively high prices
- New products are rarely introduced
- Resources are not used efficiently
- Monopolies have market power
- Monopolies are able to set prices – price setters
Oligopolies
Few firms in the market who are interdependent in their actions. Firms consider competitors reactions when changing prices / introducing new products.
- There is a high degree of competition
- Businesses try and avoid price competition preferring non price competition
- Products are branded and differentiated from each other
- Can be many take-overs
- Collusion may occur leading to cartels being formed
