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2000) an example of an oligopoly would be the fast food industry where there is a few firms such as McDonalds, Burger King and KFC that all compete for a greater market share.
In a Monopoly there is one firm that controls the market, and there is no similar products being sold by other companies. Advertising is therefore used to encourage people to buy more of their product. In a monopoly there is a downward sloping demand curve, the reason for this is that a firm must lower the price to sell and extra unit of their product. For a monopoly to maximise profits it must have an equilibrium point where marginal cost equals marginal revenue, there is no reason for a firm to move from this equilibrium point because they are fulfilling their market plan...
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