|
|
# 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. |
