I want assistance in understanding the questions being asked below.
1. Please study different market structures. And remember monopolistic competition is not the same as monopoly or competition, it is its own unique market structure.
Also, remember we are describing product market structures, not industries. And, as you'll learn when you do the simulation for WK4, many firms operate in multiple market structures since they have multiple products. So, please do not confuse things and label firms with market structure terms. (The terms are different anyway; e.g. a firm that operates in an oligopoly market structure is called an oligopolist.) You should start the WK4 simulation very soon this week as it will help you understand these different market structures better.
What kind of market structure exists for the oil producers (i.e. the ones who pull it out of the ground and ship and sell it as crude oil)? What does this market structure tell us about the pricing, output and general market behavior of crude oil suppliers (not be confused with refiners or retailers of gas)?
2. Some might say there is a progression (for new product markets) from an initial monopoly to an oligopoly to monopolistic competition to perfect competition.
What do you think? How does this happen? Can you think of examples of products where this might be true?