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ent in which a firm operates ? Number amp。 size of firms in market ? Degree of product differentiation ? Likelihood of new firms entering market Managerial Economics 115 Perfect Competition ? Large number of relatively small firms ? Undifferentiated product ? No barriers to entry Managerial Economics 116 Monopoly ? Single firm ? Produces product with no close substitutes ? Protected by a barrier to entry Managerial Economics 117 Monopolistic Competition ? Large number of relatively small firms ? Differentiated products ? No barriers to entry Managerial Economics 118 Oligopoly ? Few firms produce all or most of market output ? Profits are interdependent ? Actions by any one firm will affect sales amp。 profits of the other firms Managerial Economics 119 Globalization of Markets ? Economic integration of markets located in nations around the world ? Provides opportunity to sell more goods amp。 services to foreign buyers ? Presents threat of increased petition from foreign producers