In 1993, Purdue Pharmaceuticals of Stamford, Conn.applied for the first in a series of patents on Oxycontin, a painkiller.The U.S.Patent and Trademark Office (PTO) granted those patents based on the manufacturer's contention that the drug contained a novel innovation: It had been engineered so that only a very small dose was required for the drug to be effective for 90 percent of patients.As a result of the patent Purdue was the only company that could sell Oxycontin.Thus, Purdue became an example of which of the following market structures?

Question

Quizplus · Accepted Answer

Purdue Pharmaceuticals held exclusive rights to sell Oxycontin due to its patents, creating a situation where they were the sole provider of this specific drug, which is a characteristic of a pure monopoly.