Exercise 6 Translate the text. Monopolistic Competition and Oligopoly Perfect competition and pure monopoly represent two
extreme possibilities for a market’s structure.The structure of
almost all markets, however, falls somewhere between these
two extrems. This section considers two market structures,
monopolistic competition and oligopoly, which lie between
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the extreme cases of perfect competition and monopoly.
According to its name, monopolistic competitionis more clo-
sely related to perfect competition than to monopoly. Oligopoly
is also a combination of monopoly and competition, but it is
more closely related to monopoly than to perfect competition.
Conditions for Monopolistically Competitive Market Three conditions characterize a monopolistically com-
petitive market.First, the market has many firms,none of which
is large. Second, there is free entry and exist into the market;
there is no barriers to entry or exist. Third, each firm in the
market produces a differentiated product. This last condition is
what distinguishing monopolistic competition from perfect
competition. Examples of monopolistic competitive firms
include restaurants, retail clothing stores, and gasoline service
stations.
