When comparing monopolization to monopolistic competition in the wireless telecommunications world, what are some good differences to touch on in a short paper?

A monopoly is a market structure that is characterized by the following:

• A single supplier and many buyers.
• A relatively high level of barriers to new entrants such as vast initial capital outlay.
• Inefficiencies such as low-quality products and inefficient resource allocation.
• The seller is a price maker with the ability to set and maintain product price and quantity levels in the market.

Monopolistic competition has borrowed features from monopoly and perfect competition types of markets. It is characterized by:

• Many sellers and consumers
• Differentiated products.
• Intense advertising and marketing of the products.
• The seller has some degree of market power and is a price maker.

The advantages of a monopolistic competitive telecommunications world include:

1. Consumers enjoy fair prices and quality products as a result of competition.
2. Increased consumer variety due to a wide range of products for individuals to make choices.
3. The market has better efficient resource allocation compared to a monopoly.
4. There are relatively low barriers to entry, encouraging new competitors in the market.