When a firm possesses unique characteristics so important to competition in its industry that they form barriers to prevent entry by would-be competitors,a pure monopoly occurs.

Question

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A pure monopoly occurs when a single firm is the sole supplier of a product or service in a market, and there are no close substitutes available. This gives the monopolist significant market power and allows it to set prices and output levels that maximize its profits.

When a Firm Possesses Unique Characteristics So Important to Competition