alleryStart learning →What is a pure monopoly?
AA market in which a few large firms produce most of the output
BA market in which many firms sell close substitute products
CA market in which buyers rather than sellers set the price
DA market in which one firm accounts for all industry sales
Answer & Solution
Correct answer: D. A market in which one firm accounts for all industry sales
1. Pure monopoly sits at the opposite end of the spectrum from perfect competition.
2. It is the market structure in which a single firm accounts for all industry sales of a good or service.
3. In that situation the firm is effectively the whole industry.
4. A few firms producing most of the output is an oligopoly, and many firms selling close substitutes is monopolistic competition.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 1 "Understanding Economic Systems and Business", section 1.7 Competing in a Free Market_
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