The conditions necessary for “pure monopoly” are 1) many firms, 2) a homogeneous product, and 3) complete freedom of entry and exit.Question 28Select one:TrueFalse

Pure monopoly is a market structure in which one firm sells a(n) product, into which entry is , in which the single firm has control over the product price, and in which non-price competition may or may not be found.

Pure monopoly is characterized by which of the following?Multiple select question.One firm is the sole seller of a product or serviceFirms can enter and exit the industry very quicklyOne firm constitutes the entire industryNo effort is made to differentiate the product being sold

In an industry that is characterized by pure competition which of the following is true?Question 42Select one:a.There is one firm in an industry, total product differentiation, and complete freedom to enter and exit the market.  Pure monopolies are price setters.b.There are many firms in the industry,  with product differentiation, and no freedom to enter and exit the market.  The firms are government regulated.c.There are a few  firms in the industry, some product differentiation, and some freedom to enter and exit the market.  Firms have some degree of market power.d.There are many firms in the industry, no product differentiation, and complete freedom to enter and exit the market.  Purely competitive firms are price setters.e.There are many firms in the industry, no product differentiation, and complete freedom to enter and exit the market.  Purely competitive firms are price takers.

A pure monopoly is a price engaging in non-price competition.

One major barrier to entry under pure monopoly arises fromMultiple Choicethe availability of close substitutes for a product.the cost of the infrastructure needed to produce.the price taking ability of the monopoly.diseconomies of scale.