Running Head: MONOPOLY MARKET STRUCTURE 1

Monopoly Market Structure

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Monopoly Market Structure

A monopoly market structure is when one firm supplies all products in a market. The

supplier always has no competition or controls more than 25% of all products and services

provided in a particular organization. For example, Microsoft Company is the sole supplier of

computers worldwide. The monopoly act always gives an absolute organization power to decide

over the product, may it be on price, profit flow, or mode of supplying the product in a market.

While in the monopolistic competition product is where different firms can join forces and forms

a monopoly that is more inclusive. The structure is open-minded, where someone can enter or

exit whenever he wants but still can differentiate their products.

Comparison between monopoly and monopolistic structures

When comparing the structure, both monopoly market structure and monopolistic

competition product, thy can vividly outline this include but not limited to; First, the monopoly

has a single firm in the market compared to the competition where they have multiple members

in the market. Secondly, the patent has no match since it is only in the market compared to

monopolistic, who sometimes experience competition between them. Third, in monopoly, all

demand and supply are mainly done by the seller in the market compared to monopolistic, where

both parties buyers and sellers could have controlled it.

Fourth, in monopoly, they do not experience the freedom of entry and exit while in a

monopolistic structure, the product and other individuals can enter and exit freely. Firth, in the

monopoly structure, the seller can control the demand, services, and price while in the

monopolistic structure, the given product can be controlled both by the buyer and the seller for

effective results. Sixth, in the monopoly market structure most of the time, the profit is

predictable different from the monopolistic structure where the benefit always not stable and
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become unpredictable. Lastly, in a monopoly structure, the given product supply and demand

majorly depend on the seller of the product while the monopolistic competition market supply

and demand unfixed; thus, anyone can control between the seller and buyer.

How the two products can be advertised

Monopoly market structure

Most cases, even they have no rivals, monopoly market structure needs to promote their

products, and these can be by the use of blogs, social media, websites, visual emails, and books.

Monopolistic competition structure

Due to internal and external competition, advertisements are the primary tool of

marketing products; and this can be through the use of social media, websites, blogs, emails, and

newspapers.

How advertisement affect price and market share

The commercial plays a crucial role in either increasing or decreasing the exchange of the

products since it opens the door to more people to get informed about the product. It helps

increase the demand for the product advertised. It is a legit way of telling the consumer and the

quality or importance of the product to them, lastly, it also helps in introducing a new commodity

in the market letting the consumer to be informed about the product the price and duration.

Why advertisement is vital in monopolistic compared to monopoly

Monopoly has minimal ad compared to the monopolistic competition. Resulting in more

competition of products in the market for the consumers will prefer a product that they are well

own to them. Also, the consumer, in many cases, likes comparing different products of goods in

the market only to evaluate the most preferred one to them. Hence increasing the competition in
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the monopolistic sector to cope with other brands. Unlike the monopoly where the seller has

control to all since he is the sole producer of the products.