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Essay text:
It is primarily used as a benchmark against which other market structures are compared. The industry that best reflects perfect competition in real life is the agricultural industry.
Monopoly:
- Many buyers
- Only one seller - e.g. not a price taker
- Perfect information
- Restricted entry and possibly exit
Monopoly is a market structure in which there is a sole supplier of a good, service or resource that has no close substitutes and in which there is a barrier preventing the entry of new firms into the industry.
Oligopoly:
- A few firms selling a similar product
- Each firm produces branded products
- There is likely to be significant entry barriers in to the market in the long run which allows firms to make above average profits...
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