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Unformatted text preview: PURE MONOPOLY Pure monopoly is a market structure with only one seller. It sells a highly ddifferentiated a product without close substitute. Being the only seller in the market, it possesses a ver market power. It can determine the price that it charge by controlling the quantity it supp market. This tremendous market power can be exploited by the monopolist for it to make amount of profit at the detrement of the public. Accordingly, the government often regula monpolist so that it serves the best interest of the public. There is quite a bit of difficulty in entering or exiting the market. Beet. The monopolist fac a number of constraints in establishing it self in the market. It faces (a) legal constraint w it must get a permission from the government to get into the business, (b) it faces techni a provider of unique product or services, it requires highly trained and technical people t...
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