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Sole Proprietorship in Perfect Competition
I don't understand. I'm selling my product at such a low price and I'm still not getting very many customers. Maybe it's the quality.
My business has been doing pretty well for the price and quality of my product.
Wow! My product has been selling very well! People don't mind spending a little extra money for a high quality product.
That was an example of a sole proprietorship in a perfect competition. The only thing they compete on is prices on the same product with the only difference being the quality. Sole proprietorships can also be in a monopolistic competition, where there is freedom of entry and there are no close substitutes for the products being sold.
A corporation could be a monopoly by controlling the market so that there are little to no other corporations that sell the same product, so that they gain all the profit for that particular product.
Oligopolies set there prices high to maximize their profit, which will often lead to partnerships in order to share the risks and costs with other firms so that one firm does not have the full responsibility.

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