Monopolistic competition, Oligopoly, Pure monopoly, and Pure competition are considered to be the four basic market structures.
Oligopoly competition characterizes an industry in which many companies offer similar (but not perfect) alternative products or services. Barriers to entry into a monopoly and highly competitive industry are low, and the decisions of a single company do not directly influence the decisions of competitors.
Some of the most notable oligopolies in the United States are film and television production, recorded music, wireless carriers, and airlines. Since the 1980s, it has become more common for industries to be dominated by two or three companies.
If a single company is the only manufacturer of a product without a close replacement, there is a pure monopoly.
There are many indistinguishable product suppliers, and there are no companies that have a significant impact on prices. Other common conditions are easy-to-market entry and full market intelligence of the new company.
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