It is a market structure in which a business has a large amount of competitors which are originally standardized but are then changed depending on the company.
Every Business makes different decisions about how much it spends based on the product its selling, the market its in, and how much it would cost to produce it.
There is freedom to enter and exit the market with no major barriers in the way.
Each and every product is differentiated based on design or the way its advertised.
No barriers for entering or exiting market
More efficient than a monopoly
Different products means more consumer choice
Differentiation isn't always cost effective or offer any utility
The seller has no control over the prices
There are multiple types of laptops that all look and operate differently
An oligopoly is when only a few businesses are competing against each other
A small amount of sellers
Standardized products for the industry but differentiated for the consumers
They have some control over the price of the product
There is a significant number of barriers in order to enter or exit the market
The larger amounts of profit when compared to a monopolistic market can result in more efficiency and higher quality products
Better price stability because of more control over prices
Less options for consumer choice
Less competition could mean that prices are going to become higher
Large barriers of entry
Competition between Coke and Pepsi
When a single company has the lowest production cost for a specific product. Natural monopolies usually have a very high cost to operate making it difficult for more than one business to operate.
Geographical monopolies are when only one company can give a specific product or service within a specific area. Small towns usually have a limited amount of places to get products or services from.
When the product a business offers has been patented by that specific business and therefore cannot be replicated by others. Like a drug that cures a certain type of cancer is the product of a certain company and can only be produced by that company for a period of time.
When a government runs a specific business or only allows a single business to run concerning a specific product or service. This is usually used for things that are too expensive to have multiple companies run.