III-ACSAD ECONOMICS REPORT

1. MONOPOLISTIC
COMPETITION
AND
OLIGAPOLY

2. CHARACTERISTICS OF MONOPOLISTIC
COMPETITION
 Large number of sellers acting independently
 Product differentiation
 Producers have the degree of control over price
 Entry of new firms

3. EXAMPLE OF MONOPOLISTIC COMPETITION
 Restaurants
 Soap Industries

4. CHARACTERISTICS OF OLIGOPOLY
 Few firms which dominate the market
 Products are identical or differentiated
 Price agreement among producers
 Entry of new competitors in the market
 Strong advertising

5. EXAMPLE OF OLIGOPOLY IN THE PHILIPPINES
 Oil Industry
 Supermarkets
 Telecom Companies