Compare and differentiate the 4 basic characteristics of monopolistic competitive markets and oligopoly markets (Refer to Table 9.1) Give examples.

Provide your own real examples of monopolisticcompetition and oligopoly markets, and explain how these firms are price makers.

Table 9.1 Overview of Competitive Environment, Four Market Types Perfect Monopoly Monopolistic Oligopoly Competition Competition Market power? No Yes, subject to government Yes Yes regulation Mutual interdependence among No No No Yes competing firms? Nonprice competition? No Optional Yes Yes Easy market entry or exit? Yes No Yes, relatively easy No, relatively difficult