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Unformatted text preview: QUICK QUIZ: Define oligopoly and monopolistic competition and give an example of each. MARKETS WITH ONLY A FEW SELLERS Because an oligopolistic market has only a small group of sellers, a key feature of oligopoly is the tension between cooperation and self-interest. The group of oligopolists is best off cooperating and acting like a monopolistproducing a Tap water Cable TV Monopoly (Chapter 15) Novels Movies Wheat Milk Monopolistic Competition (Chapter 17) Tennis balls Crude oil Oligopoly (Chapter 16) Number of Firms? Perfect Competition (Chapter 14) Type of Products? Identical products Differentiated products One firm Few firms Many firms Figure 16-1 T HE F OUR T YPES OF M ARKET S TRUCTURE . Economists who study industrial organization divide markets into four types monopoly, oligopoly, monopolistic competition, and perfect competition....
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- Spring '10