# of Firms Product Diff. Entry/Exit
Perfect Competition Many None Free
Monopoly One None Highly Restricted
Monopolistic Competition Many Significant Free (Sometimes Restricted)
Oligopoly Few Some Restricted
Monopolistic competition is very similar to perfect competition except for the very important fact that there is meaningful product differentiation. By meaningful we mean that consumers care about the differences. We will examine this industry both when entry is free and when it is restricted.

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