Pure Monopoly

A pure monopoly occurs when a single company or entity is the exclusive provider of a product or service, meaning no close substitutes exist. This control allows the monopolist to set prices higher than in competitive markets, potentially limiting consumer choice and innovation. Typically, monopolies emerge due to barriers like high costs, regulatory constraints, or ownership of essential resources. While they can benefit consumers through economies of scale and consistent product quality, they often draw scrutiny for suppressing competition and exploiting market power. Examples include utilities or patented innovations where one entity dominates.