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c. Monopolistic Competition
This concept was coined by Chamberlin and Robinson to describe industries with few dominant firms but with a large number of competitive fringe firms. Secondly, they exhibit highly differentiated products (real, perceived or imagined). Thirdly, they face independent decision making process unlike oligopolies that tend to be dependent. On one hand, they have monopoly characteristics such as engaging in product differentiation, while on the other hand they exhibit competitive characteristics of many firms in the industry. The other characteristics include independent decision making and ease of entry and exit but with substantial barriers by leading brands.
d. Oligopolistic Competition
Finally, the oligopolistic market is characterized by having a few closely related firms with a high degree of interdependence. Hence, actions of one to change price, output, product style, quality, terms of sale etc, have perceptible impact on sales of other firms. In some cases, they may be homogeneous such as cash products producers of sugar cane, coffee, tea, timber, animal hides etc., while in other cases, they may produce differentiated products such as small scale consumer product producers of vegetables, fruits, milk etc.
