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Define pure monopoly.

Understand the Problem

The question is asking for a definition of 'pure monopoly', which refers to a market structure where a single seller controls the entire supply of a product or service, facing no competition. This high-level overview outlines that a pure monopoly exists when one company or entity is the exclusive provider of a particular good or service.

Answer

A market structure where a single company sells a product which has no close substitutes and there are high barriers to entry.

The final answer is a market structure where a single company sells a product which has no close substitutes and there are high barriers to entry.

Answer for screen readers

The final answer is a market structure where a single company sells a product which has no close substitutes and there are high barriers to entry.

More Information

In a pure monopoly, the monopolist has significant market power and can influence prices significantly. Examples include utilities, where a single company may be the only provider in a region.

Tips

A common mistake is confusing a monopoly with an oligopoly, where only a few firms dominate the market.

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