Pure Monopolies

Published: 2021-06-29 06:36:19
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Given the nature of today's competitive business world, pure monopolies do not exist. A pure monopoly can take place in an industry in which one firm is the sole producer or seller of a product or service for which there are no close substitutes (Brue, McConnell, & Flynn, 2010, p. 181). The question is what industry has that type of firm? Every industry today has stiff competition and has to continually battle to try to stay ahead or keep up with its competition. Although pure monopolies do not exist, less pure forms and near-monopolies are relevant. Pure monopolies do not exist simply because other firms are aggressive in competing and technology is too advanced for others to monopolize as efficiently and effectively. If a pure monopoly were to exist it would be up to the consumers to support its success because they either choose to buy the product or simply go without it.
When you take a look back into time there may have been notable pure monopolies, but they did not last very long before being challenged by other firms. Coca-Cola can be an example of a pure monopoly prior to the arrival of Pepsi-Cola ten years later. If Pepsi-Cola did not challenge the sales of Coca-Cola, Coca-Cola may still be a pure monopoly today. What has happened over the years of manufacturing different products and company's providing services is other company's see the product, give it their own name, uniqueness, and put it on the market to compete with others. To become a pure monopoly a firm has to establish specific characteristics such as being a single seller, have no close substitutes, is the price maker, and has strong barriers of entry. "The single seller is the sole producer of a specific good or the sole supplier of a service; the firm and the industry are synonymous (Brue, McConnell, & Flynn, 2010, p.181). Having no close substitutes makes the firm's product unique and any consumer who chooses not to purchase it has decided to go without it. "The pure monopolist controls the total quantity supplied and thus has considerable control over price; it is a price maker (Brue, McConnell, & Flynn, 2010, p.181). Establishing barriers of entry allow the pure monopolist to face no immediate competition because the economical, technological, legal, and other barriers are completely blocked (Brue, McConnell, & Flynn, 2010, p.181). Without these characteristics the chances of even coming close to becoming a pure monopoly will not and cannot exist. Currently there are no firms that have all these characteristics to institute the chance of a pure monopoly, rendering pure monopolies nonexistent. However, there are some less pure forms and near monopolies that do exist in the market that could be misunderstood as a pure monopoly.
In New Jersey, Public Service Energy and Gas (PSEG) supplies the majority of electric and gas to homes and businesses. Public Service Gas and Electric (PSEG) is a regulated gas and electric service

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