Economics Oligopoly Questions
The main difference between an oligopoly and a monopoly is the number of firms operating in the market. In an oligopoly, there are a few large firms that dominate the market and have significant market power. These firms often compete with each other through strategies such as price wars, product differentiation, or collusion. On the other hand, a monopoly exists when there is only one firm in the market, giving it complete control over the supply and pricing of a particular product or service. Monopolies typically have no direct competition and can set prices at their discretion.