describe a real-world example of a firm that operates as a pure monopoly. Give an example of
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Question:
describe a real-world example of a firm that operates as a pure monopoly.
- Give an example of a monopolist that operates in an industry that is not perfectly competitive.
- Make sure the company is a monopolist, and not anoligopolist, or a firm engaged in monopolistic competition?
- What is the source of their market power?
- Does the company restrict output in order to charge a price above marginal cost?
- Is there a threat of competition reducing the company's profit in the long run?
- Be specific in describing why the firm is able to maintain its market power in the long run.
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