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There are no restrictions on entry of new firms to the industry. With thousands of firms having a market share there is little power amongst any few firms. Monopolistic competition, below 40% for the four-firm measurement, is a market structure with many firms; each firm produces similar but slightly different products. Each firm possesses an element of market power with no restrictions on entry of new firms to the industry markets in which numerous firms supply products which are each slightly different. Oligopoly, above 40% for the four-firm measurement, is a market structure in which a small number of firms compete...
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