Monopolistic Competition
This type of structure is free to enter and exit the market. Each organization or firm makes all the independent decisions about pricing as well as the amount of output to produce, and the overall cost of production. The products in the monopolistic competition market structure are differentiated. There are four main types of differentiation, namely:
Monopolistic competitors are most common in organizations such as
- Hotels
- Barbers Shops
- Hair Salons
- Corner Shops
- Bars and Pubs
Monopoly
The monopoly is the type of market structure that there is only one seller that produces a unique product. There are high barriers to entry, the price of the product is determined by the seller because there is no competition or close substitutes. Monopolies have specific sources that allow them to have power in the market. These Include :- Economies of scale
- No substitutes
- Capital requirements
- Control of Natural Resources
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