Pure

Opposites of Perfectly Competitive Firms

• Definition of Pure Monopoly
  • Pure monopolies are defined as the sole sellers in a market.
  • Unlike competitive firms, they do not share market demand with other sellers.
  • Key examples include firms within the utility industries and companies holding patents.

Characteristics of Pure Monopoly

• Single Seller

  • A pure monopoly has only one seller in the market.
  • Example: ElectriCon, a company providing electricity to an entire city. When consumers such as Alex and Clara use electricity, they pay ElectriCon.

• No Close Substitutes

  • The product offered has no close substitutes.
  • Alternatives such as candles or generators do exist, but they are not close substitutes for electricity, highlighting the unique