Pure monopoly exists when
A) many firms produce a good with no close substitutes.
B) a single firm produces a good with no close substitutes.
C) a single firm is present in the market.
D) a single firm produces a good with many close substitutes.
E) a few firms dominate an industry.

Question

Quizplus · Accepted Answer

Pure monopoly exists when a single firm produces a good with no close substitutes. This means that the firm has complete control over the supply of the good and can set prices as high as they want without fear of competition.

Pure Monopoly Exists When