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- Thats so good to hear! I have to be careful because my sole propietorship could lead into monopolistic competition and thats the last thing we need.
- Hey Girl! Sorry I invited you so last minute, but I wanted you to try out my new protein coffee.
- Its AMAZING! I dont think I have ever tasted anything like it.
- What on earth are you talking about?
- You see, when multiple businesses create a product that is similar but isnt the perfect substitute, that is monopolistic competition. This is not a good thing tho, we want perfect competition.
- Yup you got it! And how about you walk with me and I can tell you how a corporation could be a monopoly AND how a partnership could be an oligopoly.
- ok got it! And I'm guessing perfect competition is where you sell very similar items to the same price? But wait.... how could a corporation become a monopoly?
- Of course! And you know.... I'm always looking for a new business partner.
- You see, if I were to buy up every competition and scarce source, that would mean I would be creating a monopoly which is NOT good. However if I were to have small business and create a partnership with someone to make a bigger business, that would make an oligopoly partnership which is a way better option than any monopoly partnership.
- OK now I'm starting to understand! Thank you for explaining everything to me!
- Uh.... I guess we will just have to see about that.
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