Monopoly is that type of market where there is a single seller and large number of buyers. There is absence of close substitutes to the products.
Features of Monopoly market:-
(a) Single seller and large number of buyers.
(b) Restrictions on the entry of new firms.
(c) Absence of close substitutes.
(d) Full control over price
(e) Price discrimination.
(f) Price maker
(g) Downward sloping less elastic demand curve.
It is that type of market in which there are large number of buyers and sellers. The Sellers sell differentiated product but not identical. The products are close substitutes of each other.
Features of Monopolistic Competition:-
(a) Large no. of buyers and sellers
(b) Product Differentiation on basis of colour, taste, packing, trademark, and size.
(c) Selling Cost on advertisement and sales promotion.
(d) Free entry or exit of firms.
(e) Lack of perfect knowledge.
(f) Partial control over price.
(g) Imperfect mobility: Factors of production and products are not perfectly mobile.
(h) Elastic and downward sloping demand curve.
Oligopoly is the form of market in which there are few sellers or few large firms, intensely competing against one another and recognising interdependence in their decision-making.
Features of Oligopoly:-
(a) Few Sellers
(b) All the firms produce homogeneous or differentiated product.
(c) Under oligopoly demand curve cannot be determined. It has a kinked demand curve.
(d) All the firms are interdependent in respect of price determination.
(e) Price rigidity.
On the basis of production, Oligopoly can be categorised in two categories:
(i) Collusive oligopoly is that form of oligopoly in which all the firms decide to avoid competition and determine the price and quantity of output on the basis of cooperative behaviour.
(ii) Non-collusive oligopoly is that form of oligopoly in which all the firms determine the price and quantity of output according to the action and reaction of the rival firms
On the basis of product differentiation, Oligopoly, can be categorised in two categories:
(i) Perfect Oligopoly: The Oligopoly is perfect or pure when the firms deal in the homogeneous products.
(ii) Imperfect Oligopoly: Whereas the Oligopoly is said to be imperfect, when the firms deal in heterogeneous products, i.e. products that are close but are not perfect substitutes.
Price Maker: – In economics, a price maker is a monopolistic company that can dictate the prices of its goods because there are no substitutes for it. In trading, a price maker is a stockholder who controls a large number of shares and is able to affect the stock’s price.