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Please give an example of a US company in monopolistic competition and one in oligopoly. I need a monopolistic competition company and one that operates in oligopoly.  I just can't grasp the difference enough to pick the two US companies.  They need to be publicly traded companies that will be easy to analyse price elasticity of demand for their products, the barriers to the market and the degree of economic profits.

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pohnpei397 eNotes educator | Certified Educator

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Oligopoly is the easier of these two for identifying well-known companies that fit your criteria.  Perhaps the best example of a market that is an oligopoly is the car market.  There are a very few large car companies that dominate the market.  So you might pick Ford or General Motors.

Monopolistic competition is most easily seen in smaller firms like restaurants.  If you need to identify a publicly traded company, you might try one of the major fast food chains like Wendy's or KFC.  These firms are in competition with many others (McDonald's, Burger King, Subway, Pizza Hut, all sorts of smaller chains like Carl's Jr).  They also compete with one another by trying to differentiate their products through advertising.

The main difference that you need to keep in mind is that oligopolies have very few firms in competition with pretty high barriers to entry.

 

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jlwabby | Student

Thank you for your answer.  But your comment:

"The main difference that you need to keep in mind is that oligopolies have very few firms in competition with pretty high barriers to entry."

throws me off.  There are so many fast food companies, so how is that oligopoly?  Hope that makes sense.