![]() ![]() In both models the cost conditions are such as to give rise to U-shaped cost curves both in the short run and in the long run. In monopoly entry is blockaded by definition. However, in the short run entry is not easy entry is a long-run phenomenon. In pure competition entry (and exit) is free in the sense that there are no barriers to entry. In monopoly there is a single seller in the market. In pure competition there is a large number of sellers, so that each one cannot affect the market price by changing his supply. The main feature of monopoly is that the total supply of the product is concentrated in a single firm. ![]() ![]() In monopoly the product may or may not be homogeneous. ![]() The product is homogeneous in pure competition.
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