Chapter
12
Pure
Monopoly
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Introduction
to
Pure
Monopoly
Pure
monopoly
Single
seller
a
sole
producer
No
close
substitutes
unique
product
Price
maker
control
over
price
Blocked
entry
strong
barriers
to
entry
Non-price
competition
mostly
PR
but
can
engage
in
advertising
to
increase
demand
LO
12-2
1
Barriers
to
Entry
Barriers
to
entry
are
factors
that
prevent
firms
from
entering
the
industry
Economies
of
scale
Legal
barriers
to
entry
like
patents
and
licenses
Ownership
or
control
of
essential
resources
Pricing
and
other
strategic
barriers
LO
12-3
2