Monopolistic competition is very similar to perfect competition, though the firm has a small amount of market power. The oligopoly is very similar to the monopoly, though the firm does have a few competitors and the rivalry among those firms leads to an interdependent relationship among firms.he same is true for monopolistic competition; the ease of entry and exit extends to the monopolistically competitive market. Short-Run ProfitILoss and Long-Run Equilibrium for Monopolistic Competition When a monopolistic competitor enjoys a short-run economic profit, new firms are drawn into the industry.
The difference between horizontal analysis and vertical analysis is that vertical analysis involves listing each item on a company's financial statement as a separate column. For example, in vertical analysis, cost of goods sold (COGS) and gross margin are typically listed as a percentage of sales.
The horizontal and vertical analysis approaches are similar in that the dollar amounts reported are converted to percentages. However, the approaches differ in the base used to compute the percentages. Through this post, I will demonstrate how you can prepare horizontal and vertical analysis of a financial statement.