What is a pure monopoly?
Understand the Problem
The question is asking for a definition or explanation of what constitutes a pure monopoly in economic terms, highlighting the characteristics that define this market structure.
Answer
A single seller in a market with high barriers to entry and no close substitutes.
The final answer is a single seller in a market with high barriers to entry and no close substitutes for its product.
Answer for screen readers
The final answer is a single seller in a market with high barriers to entry and no close substitutes for its product.
More Information
A pure monopoly exists when a single company or entity is the sole provider of a particular product or service, leading to unique market control.
Tips
Common mistakes include confusing monopolies with competitive markets or oligopolies, where there is more than one seller. Always look for the absence of substitutes and high entry barriers.
Sources
- What is a pure monopoly? - Investopedia - investopedia.com
- Pure Monopoly Overview, Characteristics & Examples - Lesson - study.com
- Pure Monopoly - Definition, Characteristics, Graph, Examples - wallstreetmojo.com
