Monopoly vs. Oligopoly vs. Competition: Monopolies and Oligopolies Defined, Explained and Compared

Terms such as monopoly, oligopoly and competition get thrown around a lot but how many people understand let's say the difference between a monopoly and an oligopoly?

Through today's animation, I've defined monopolies and oligopolies as well as tried to compare a monopoly situation to an oligopoly one and, of course, to (perfect or imperfect) competition.

After watching this video, it will be clear what a monopoly is, what an oligopoly is and what the main differences between monopolies, oligopolies and competition are.

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[Pyrrhic.]

Less competitive the market is, the more government regulation is required. Also, in the real world, people cheat and often do not behave rational all the time. So i think textbook economics has its limits in real world application.

[marufhassan]

This happened with Indian telecom providers. There was a very healthy competition and there were tons of service providers but as soon as Jio hit the market with its free 3 month 4G internet and then subsequent recharges which costed around Rs 4 /GB / day, every company fell to its knees as they were charging Rs 250 /GB/month. Jio completely took the market and all the competitors merged and died down. Now we have have only 4 operator in a country of 1 billion from 10+ operator in 2016.

[ralimba]

We need regulations to guarantee perfect competition.

[mileslegend]

amazing i have actually understand it very well your amazing

[vivekchoudhary]

Too fastly explained to fit it in 1:30 mimutes

[sugrivsaurav]

What r u doing bro...
It's so fast...

[marknunes]

it's like people have tunnel vision. Punishing monopolies usually just ends up hurting their competition since the competition has to abide by the same rules as the big companies however the big companies can handle the red tape. So it usually makes it stronger. That's the meaning of the saying: "That which does not kill you, makes you stronger". So you either have to kill the big business or really think about what you're doing. In our case we do have an ace we can play. The big companies have been creating red tape for years. Also the very thing I just told you has already happened. The red tape is hurting small businesses. So the monopoly has actually been getting weaker due to all the regulations already imposed. They rely on that rather than quality. So all you have to do to hurt the monopolies is to remove the red tape. Also get rid of minimum wage (another red tape regulation) completely so that small businesses can form more easily. This extra competition will make up for the lower wages. Well anyway that's your solution. You probably wont like it.

[gauravagrawal]

Monopoly is brilliant. It has emerged from ideas to survive. Only a stupid would not understand how monopoly works. In a capitalist state, government power would be minimal and companies wouldn’t be able to collude at all. There will be sheer competition amongst all. The one who’s most innovative will survive, rest all will perish.

Imagine yourself selling 20% extra toothpaste so that your business prospers and kills the business next door. Is that a monopoly? No. It’s a fair play. You were competent enough to put forward a survival idea.

Unfortunately, we have made evils out of these terms cause people have been so left centered that they just need everything for free.