Pure Monopoly Is Defined as a

question 179

Multiple Choice

Pure monopoly is defined as a

• A)one-firm industry.
• B)market structure in which there are many substitute products.
• C)market structure maintained by entry of many rival firms.
• D)market structure created by special government sanctions.

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Definitions:

Income Effect

The change in an individual’s or economy’s income and how that change affects the quantity demanded of a good or service.

Hourly Wage

The amount of money paid for each hour of work, often set by an employer or by legal minimum wage laws.

Substitution Effect

The economic principle that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Income Effect

Variations in the income of an individual or an economy and the subsequent effects on the demand for goods or services.