Identify one monopoly, oligopoly, and a monopolistic competitor. Share one effect you think these types of firms have on the quality of goods or services. Is the quality affected positively or negatively?

Identify one monopoly, oligopoly, and a monopolistic competitor.

Facebook is an example of a monopoly in the social networking space.

Android and iOS are oligopolies in the mobile phone operating system space.

An example of a monopolistic competitor could be a local restaurant, a hairdresser, etc.

Share one effect you think these types of firms have on the quality of goods or services. Is the quality affected positively or negatively?

Monopolies thrive by crushing any companies that are created to disrupt their business. They do this by either buying them out or creating similar products that are more superior. By avoiding competition, they create products that are possibly not the best that there can be.

Oligopolies, on the other hand, are good at competing one another. However, they achieve an effect that is similar to a monopoly since they also manage to disable any new competing products by preventing them from entering the mainstream market.

Monopolistic competitors help to improve on the quality of goods or services they offer since the only way to stay afloat in a monopolistic market structure is by providing superior products.