Question

What is monopoly and oligopoly in economics?

Answer 1

heya user!

Monopoly -> there is a single firm that provides the goods to many consumers. consumer are price taker. the good has no close substitute and there are large barriers to the entry of a new firm.

Oligopoly -> there are more than one but not too many firms. Each firm produces the same good. consumer are price taker. it may be possible for new firms to enter, and existing firm to leave the market.

hope this help!