Oligopolies

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Oligopoly and monopolistic competition have some similarities, but also have a few important differences. Both are examples of imperfect competition on the market structure continuum between ideals of perfect competition and monopoly. The dividing line between oligopoly and monopolistic competition can be blurred due to the number of firms in the industry.  The primary difference between oligopoly and monopolistic competition is the relative size and the market control of each firm based on the number of competitors in the market.  There is no clear-cut dividing line between these two market structures, for example, the women’s and girl’s cut and sew apparel manufacturing and fluid milk manufacturing industries.

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