question archive Which of the following industries are pure monopolies? 1

Which of the following industries are pure monopolies? 1

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Which of the following industries are pure monopolies?

1. The only supplier of heating fuel in an isolated town,

2. The only supplier of IBM notebook computers in town,

3. The only supplier of digital cameras.

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1.

The only provider of heat fuel in a disconnected zone is considered as pure monopolist considering the fact that no other substitutes are accessible for heat fuel.

2.

Consumers in a town can buy other PCs of various brands, so the main provider of IBM PC computer can't be considered as a pure monopolist. As we know other substitutes are accessible, at that point purchasers can shift their demand to different items. This diminishes the monopoly power of the seller.

3.

Substitutes are accessible for advanced digital cameras, so the main provider of digital cameras can't be considered as a pure monopolist. because the accessibility of substitutes diminishes the monopoly power of a supplier.