Monopolistic competition and oligopoly are similar in that firms in both markets

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Both monopolistic competition and oligopoly markets have a degree of market power and product differentiation. This allows firms to charge higher prices than under perfect competition. However, firms in both markets can earn profits in the long run, which distinguishes them from perfect competition. Additionally, firms in both markets may engage in advertising and other types of selling expenses to differentiate their products and attract customers. Lastly, firms in monopolistic competition may produce differentiated products, while firms in oligopoly may produce either differentiated or homogeneous products. The key similarity between these markets is the ability for firms to exercise market power and charge higher prices.

Monopolistic Competition and Oligopoly Are Similar in That Firms in Both