| Definition |
A market structure where a single firm is the sole producer and seller of a product or service. |
A market structure where a few large firms dominate the market and may compete or collude. |
| Number of Sellers |
Only one seller in the market. |
Few sellers (usually 2–10 major players). |
| Product Type |
Unique product with no close substitutes. |
Products may be homogeneous or differentiated. |
| Price Control |
Full control over pricing (price maker). |
Limited control; firms may follow price leadership or engage in tacit collusion. |
| Entry Barriers |
Very high – legal, financial, or technical. |
High – economies of scale, brand loyalty, and capital requirements. |
| Market Power |
Complete market power. |
Significant but shared among a few firms. |
| Examples |
Railways in India, utility providers (electricity, water). |
Automobile industry, smartphone market, airline industry. |
| Consumer Choice |
Very limited or no choice. |
Limited, depending on the number and differentiation of firms. |
| Advertising |
Usually not needed due to lack of competition. |
Extensive use of advertising and branding. |
| Profit |
Can earn long-term supernormal profits. |
Firms may earn supernormal profits depending on competition and collusion. |
| Pricing Strategy |
Monopolist sets the price to maximize profit. |
Pricing may involve strategic behavior or price wars. |
| Output Level |
Restricted output to keep prices high. |
Output depends on market share and competitive strategies. |
| Efficiency |
Often allocatively and productively inefficient. |
Efficiency varies; may be improved with competition or hurt by collusion. |
| Demand Curve |
Downward sloping; monopolist faces the entire market demand. |
Kinked or uncertain due to interdependence among firms. |
| Government Regulation |
Heavily regulated to prevent abuse of power. |
Regulated to prevent collusion and ensure fair competition. |
Monopoly vs Oligopoly