Question
Define oligopoly, In what respects does it differ from monopoly?

Answer

Oligopoly is a market dominated by few large firms competing with each other

Basis

Oligopoly

Monopoly

1. No. of sellers

There are few large sellers producing a commodity.

There is only a single seller in the market.

2. Entry of new firms

Entry of new firms is difficult.

Entry of new firms is restricted.

3. Demand curve

Demand curve is indeterminate.

Demand curve faced by a monopoly firm is less elastic.

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