A Firm That Is a "Pure Monopoly" Is

question 43

Multiple Choice

A firm that is a "pure monopoly" is

• A) a seller of a highly advertised and differentiated product in a market with low barriers to entry in the long run.
• B) the only seller of a good for which there are no good substitutes in a market with high barriers to entry.
• C) the only buyer of a unique raw material.
• D) the producer of a product subsidized by the government.

---

Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to generate wealth through investment or production.

Natural Resources

Materials or substances that occur in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.

Opportunity Cost

Missing potential improvements from other opportunities when a particular alternative is chosen.

Car Payments

Regular payments made towards the financing of a vehicle purchase, usually on a monthly basis.