Pure Monopolies Do Exist

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Since the Industrial Revolution, pure monopoly has existed and has even accelerated to the point that it was considered by some to be antithetical to our country’s basic market system. Because of this preconceived notion, the United States government put into place laws and regulations that businesses must follow in order to be deemed legal (Monopoly, 2011). So then, one might ask, how in today’s market system do pure monopolies exist? This paper will discuss the main characteristics of a pure monopoly, including the barriers that exit so other firms cannot enter into the market with the same product, and their control over pricing of its product. There have become less and less industries that would be considered a pure monopoly, but some industries of pure monopoly still exit because of the characteristics of their business (Brue, McConnell, & Flynn, 2010). Therefore even with all the competition in today’s market system, pure monopoly is still in existence throughout the country. The two main characteristics that seem to be the most common that a business/industry needs to have in order to be considered a pure monopoly would be associated with its product or service being offered. The business would be considered the only wholesaler, that is, it must be the sole producer of a certain product or sole supplier of a service. Besides the business being the single seller of a product, there can be no substitutions or variations of the product or service. This means that the product or service has to be unique a one of a kind and that is only available to consumers by the specific business. Examples would be if you take a certain prescription drug that has been patented; the Cardinals professional baseball team; another kind of example would be in a small home town’s florist shop where her designs are one of a kind and no one else can duplicate. You can see that the
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