Explain the Difference Between an Oligopoly and Monopolistic Competition

question 54

Essay

Explain the difference between an oligopoly and monopolistic competition.Illustrate using examples.

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Definitions:

Sales Discounts

Reductions to the selling price of goods or services, offered to customers to encourage prompt payment or to incentivize bulk purchases.

Accrual Basis

An accounting method where revenue and expenses are recognized when they are earned or incurred, regardless of when cash transactions occur.

Cash Basis

Cash basis accounting is an accounting method where revenue and expenses are recorded only when cash is received or paid, respectively.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.