In your responses, to your peers by providing examples from the news of oligopolistic markets. Compare and contrast with examples of monopolistic competitive markets.

peers:

An oligopoly is the most common type of market structure. There are several features that makes an oligopolistic market just that. a few of which are: Barriers to entry, very few firms, and interdependence of firms. In this type of market there must be some barriers to entry to ensure that firms within the market get a significant slice of the pie or in other words, gain a significant amount of the market share. One example of a barrier is brand loyalty. As for the interdependence of firms, in this type of market, there is a high degree of interdependence, which means that the price and output policy of one firm has a huge impact of the price and policy output of their rival firms within the same market.

Firms that are in the Oligopolistic market, set their prices instead of taking prices from the market. Meaning the profit margins are higher than they would be in a more competitive market. Unlike other market firms, the price and output policies are under and oligopoly is never a fixed price. The interdependence of firms led uncertainty will always exist in the market. This is why it in this situation, it can be difficult to determine the equilibrium price and output policies. By controlling their prices, they are able to raise their barriers to prevent any new competition from entering the market.

One can easily distinguish the difference between the monopolistic market and an oligopolistic market. In a monopolistic market, there's only one firm. One firm that sells or produces the product or service, which gives them the power to set the prices however high or low they want to. However, in an oligopolistic market there is more than one firm. Albeit, only a very few, but still more than one. One example of an oligopolistic market is cell phone companies. Each company sells the same version of a certain cellphone phone; however, the consumer has to make the decision of which cell phone plan works the best with their budget. An example of a monopoly is Microsoft and Windows being as no other company does what they do.