Implication of freedom of entry and exit of firms under perfect competition:
the implication is that in the long run under perfect competition would be earning only normal profit because if the firms are earning abnormal profit then new firms enter the market and market supply increases and market prices decreases then abnormal profit are wiped of and firms are left with only normal profit.
if the firms are incurring abnormal loss then few firms enter the market ,market supply decreases,market price increases and firm start earning normal profits.
Implication of non price competition under oligopoly:
in oligopoly market situation there are few sellers capturing a large market .for example: auto producing firms like suzuki,tata,mahindra etc.
there is a very high degree of competition in the oligopoly market known as cut throat competition which leads to price war.
hope this answer will help u :)
