Question

What are the characteristics of Monopolistic competition vs. Oligopolies?

Answer 1

In monopolistic competition there are many sellers and buyers selling differentiated good. For example, toothpaste industry. In oligopoly, there are only a few sellers selling eitherr homogenous or differentiated goods. For example, automobile industry. There are no entry and exit barriers in monopolistic competition but there are in oligopoly.
In the long run, imonopolistic competition firms earn normal profits but in oligopoly firms may earn economic profits.