Pure monopoly and market power
Pure monopoly and market power
A pure monopoly is a market with one seller, no close substitutes, and high barriers to entry. Because the firm supplies the whole market, it has market power and is a price maker rather than a price taker.
Step-by-step lessons on Eduqas A Level Economics Monopoly. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.