Respuesta :
A monopoly makes more profit than an oligopoly. This is because in a monopoly, there is only one firm operating in the industry while in an oligopoly there are more than one firm operating in the industry.
What is a monopoly and an oligopoly?
A monopoly is when there is only one firm operating in an industry. In an industry where there is monopoly, the barriers to entry and exit of firms are usually high. The demand curve of a monopoly is downward sloping.
Due to no competition from other firms, all the demand for the good in the industry comes to the monopoly seller. The seller usually has an inelastic demand so it can set the price of the good as high as he / she pleases. The government or regulatory agencies usually regulate the price of monopolies.
An Oligopoly is when there are few large firms operating in an industry. Due to more the fact that there are more than one firm operating in the industry, there might be price competition among sellers in the absence of a cartel formation among the sellers. The price competition among sellers reduce their profits.
To learn more about oligopolies, please check: https://brainly.com/question/26130879
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