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Monopsony refers to a market where there is one buyer and multiple sellers. It is similar to monopoly, but in reverse. It is an example of excessive competition and few buyers where competition to win the purchasing power of that single buyer is so strong that it could spell disaster for many competitors, forcing them out of the market. An example of this is the issue of four new free newspapers suddenly appearing in their boxes on city streets side by side, equally as good and equally as enticing to readers; one of the four newspapers will not be able to survive due to unfair numbers of competitors.

Monopolistic competition is a competitive company that monopolizes a market to influence its prices by adjusting their production rates. Such product production produces less than perfect copies of the original and in such a way that they are the only ones producing it. Thus the monopolistic company exploits their own brand name by reaping a higher profit in comparison to what they would have done under normal circumstances. However, in the end a balance results as other competitors join forces to drive the other business into a zero profit situation by forcing the price of the product down. The company will continue until they are stopped.