Monopoly vs. Oligopoly: What's the Difference?
Edited by Sumera Saeed || By Sawaira Riaz || Published on November 18, 2023
Monopoly: Market with one dominant seller. Oligopoly: Market with few dominant sellers.
Key Differences
Monopoly exists when a single company or entity dominates an entire market, setting prices without competition. Oligopoly, on the other hand, occurs when a few companies dominate a market, often leading to some level of price collaboration.
Sawaira Riaz
Nov 18, 2023
In a Monopoly, the single seller has complete control over the supply and pricing of goods or services. In an Oligopoly, while few firms dominate, they must consider the actions of their competitors in their strategic decisions.
Sawaira Riaz
Nov 18, 2023
Barriers to entry are extremely high in a Monopoly, preventing new entrants from competing. In an Oligopoly, barriers exist but are not insurmountable, allowing for some level of competition.
Sawaira Riaz
Nov 18, 2023
Consumer choice is severely limited in a Monopoly due to the absence of alternative providers. In an Oligopoly, consumers have some choices, albeit limited, among the few dominating firms.
Sawaira Riaz
Nov 18, 2023
A Monopoly can lead to higher prices and less innovation due to lack of competition. An Oligopoly, while also limiting competition, may have more innovation and competitive pricing due to the presence of multiple players.
Sawaira Riaz
Nov 18, 2023
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Comparison Chart
Price and Innovation
Often higher prices, less innovation
Potential for competitive pricing, more innovation
Harlon Moss
Nov 18, 2023
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Monopoly and Oligopoly Definitions
Monopoly
Absence of competition in a market.
Their monopoly allowed them to set high prices.
Aimie Carlson
Oct 28, 2023
Oligopoly
Limited competition among major players.
In this oligopoly, firms subtly competed.
Sara Rehman
Oct 28, 2023
Monopoly
Single seller in a market.
She criticized the monopoly for poor service.
Sara Rehman
Oct 28, 2023
Oligopoly
Few companies controlling a market.
He studied pricing strategies in an oligopoly.
Sawaira Riaz
Oct 28, 2023
Monopoly
Sole provider of a product or service.
The rail company operated as a monopoly.
Aimie Carlson
Oct 28, 2023
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Oligopoly
Market dominated by a few firms.
The airline industry is an oligopoly.
Harlon Moss
Oct 28, 2023
Monopoly
Dominant control by one entity.
The tech giant's monopoly worried regulators.
Sara Rehman
Oct 28, 2023
Oligopoly
Concentrated market power among few.
In the oligopoly, each firm's decision mattered.
Sawaira Riaz
Oct 28, 2023
Monopoly
Exclusive control by one group of the means of producing or selling a commodity or service
"Monopoly frequently ... arises from government support or from collusive agreements among individuals" (Milton Friedman).
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Oct 13, 2023
Oligopoly
Small number of dominant sellers.
The oligopoly led to high smartphone prices.
Janet White
Oct 28, 2023
Monopoly
A company, group, or individual having exclusive control over a commercial activity.
Sawaira Riaz
Oct 13, 2023
Oligopoly
A market condition in which sellers are so few that the actions of any one of them will materially affect price and have a measurable impact on competitors.
Sawaira Riaz
Oct 13, 2023
Oligopoly
An economic condition in which a small number of sellers exert control over the market of a commodity.
Sawaira Riaz
Oct 13, 2023
Monopoly
Exclusive possession or control
Arrogantly claims to have a monopoly on the truth.
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Oct 13, 2023
Oligopoly
(economics) a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors
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Oct 13, 2023
Monopoly
Something that is exclusively possessed or controlled
Showed that scientific achievement is not a male monopoly.
Sawaira Riaz
Oct 13, 2023
Monopoly
A situation, by legal privilege or other agreement, in which solely one party (company, cartel etc.) exclusively provides a particular product or service, dominating that market and generally exerting powerful control over it.
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Oct 13, 2023
Monopoly
An exclusive control over the trade or production of a commodity or service through exclusive possession.
A land monopoly renders its holder(s) nearly almighty in an agricultural society.
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Oct 13, 2023
Monopoly
The privilege granting the exclusive right to exert such control.
Granting monopolies in concession constitutes a market-conform alternative to taxation for the state, while the crown sometimes bestowed a monopoly as an outrageous gift.
Sawaira Riaz
Oct 13, 2023
Monopoly
(metonymy) The holder (person, company or other) of such market domination in one of the above manners.
Sawaira Riaz
Oct 13, 2023
Monopoly
The exclusive power, or privilege of selling a commodity; the exclusive power, right, or privilege of dealing in some article, or of trading in some market; sole command of the traffic in anything, however obtained; as, the proprietor of a patented article is given a monopoly of its sale for a limited time; chartered trading companies have sometimes had a monopoly of trade with remote regions; a combination of traders may get a monopoly of a particular product.
Raleigh held a monopoly of cards, Essex a monopoly of sweet wines.
Sawaira Riaz
Oct 13, 2023
Monopoly
Exclusive possession; as, a monopoly of land.
If I had a monopoly out, they would have part on 't.
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Oct 13, 2023
Monopoly
The commodity or other material thing to which the monopoly relates; as, tobacco is a monopoly in France.
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Oct 13, 2023
Monopoly
(economics) a market in which there are many buyers but only one seller;
A monopoly on silver
When you have a monopoly you can ask any price you like
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Oct 13, 2023
Monopoly
Exclusive control or possession of something;
They have no monopoly on intelligence
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Oct 13, 2023
Monopoly
A board game in which players try to gain a monopoly on real estate as pieces advance around the board according to the throw of a die
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Oct 13, 2023
Monopoly
Exclusive control over a market.
The utility company held a monopoly in the region.
Sawaira Riaz
Oct 28, 2023
FAQs
What is a Monopoly?
A market structure with one dominant seller controlling prices and supply.
Sawaira Riaz
Nov 18, 2023
Can new companies easily enter a Monopoly market?
No, high barriers to entry prevent new competitors.
Sawaira Riaz
Nov 18, 2023
What is an Oligopoly?
A market structure where a few companies dominate and influence the market.
Sawaira Riaz
Nov 18, 2023
Do consumers have choices in an Oligopoly?
Yes, but choices are limited to the few dominating firms.
Aimie Carlson
Nov 18, 2023
How does a Monopoly affect prices?
In a monopoly, prices tend to be higher due to lack of competition.
Sawaira Riaz
Nov 18, 2023
Can a Monopoly lead to consumer exploitation?
Yes, due to absence of alternative providers.
Sara Rehman
Nov 18, 2023
Are there barriers to entry in an Oligopoly?
Yes, but they're not as insurmountable as in a monopoly.
Harlon Moss
Nov 18, 2023
Do companies in an Oligopoly innovate?
More likely, as they compete with each other.
Sara Rehman
Nov 18, 2023
How competitive is an Oligopoly?
Limited competition among the few major players.
Sawaira Riaz
Nov 18, 2023
Is innovation common in a Monopoly?
Often less innovation due to lack of competitive pressure.
Sawaira Riaz
Nov 18, 2023
Does competition exist in a Monopoly?
No, the sole seller dominates without competition.
Sawaira Riaz
Nov 18, 2023
Can oligopolies be beneficial?
They can drive innovation and competitive pricing.
Sawaira Riaz
Nov 18, 2023
Is consumer feedback important in a Monopoly?
Less so, as there's no competition.
Harlon Moss
Nov 18, 2023
Do firms in an Oligopoly consider competitors' actions?
Yes, strategic decisions often consider competitors.
Sara Rehman
Nov 18, 2023
Is price fixing possible in an Oligopoly?
It can occur, as firms may collaborate on pricing.
Sawaira Riaz
Nov 18, 2023
What's a key characteristic of a Monopoly?
Single seller with complete market control.
Aimie Carlson
Nov 18, 2023
What's a downside of a Monopoly?
It can lead to reduced consumer welfare and choice.
Sawaira Riaz
Nov 18, 2023
About Author
Written by
Sawaira RiazSawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.
Edited by
Sumera SaeedSumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
