A Market Systems Peculiarities - Essay Example

 Monopoly is a market system that comprises of a single seller and a product with no close substitutes (Pass, Lowes & Davies, 1993). Contrary to Perfect Competition, in a Monopoly, the seller commands a significant control over the price of the sold goods or services. Any economist dedicated to capitalism ought to extend a theoretical and ethical resistance in a monopolistic scenario. An Oligopoly is a market system dominated by a few sellers (Pass, Lowes & Davies, 1993). The products sold are usually identical or similar and are mostly associated with high-cost investments, thereby discouraging the entry of the new players.

The primary job of an economist in an oligopolistic market system should be to strive for a more efficient distribution of resources, thereby enabling the entry of new firms and augmentation in competition.