Industry Structure and Efficiency

   In a general sense we've seen that we can view most industries as characterized by one of four main industrial structures. These are:

Perfect Competition:
Many small firms producing identical products in an industry with no important entry barriers.
Monopoly:
A single firm in an industry with extremely high barriers to entry.
Monopolistic Competition:
Many small firms producing differentiated products in an industry with no important entry barriers.
Oligopoly:
A few firms in an industry with significant barriers to entry whose every decision must be based on strategic considerations of competitors' response.

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