Which of the following does not necessarily apply to a pure monopoly?
A) The product the firm produces must have no close substitutes.
B) The firm must be the sole producer of a product.
C) The firm will charge the highest price possible.
D) Entry must be blocked.

Question

Quizplus · Accepted Answer

A pure monopoly may not necessarily charge the highest price possible as the firm may consider factors such as demand elasticity and potential competition when setting prices. Additionally, a pure monopoly may not always have no close substitutes as substitutes may exist but are not perceived as viable alternatives by consumers due to factors such as brand loyalty or significantly different features.

Which of the Following Does Not Necessarily Apply to a Pure