True or False Economics Question?

The pure monopolist produces a product for which there are no close substitutes.





I Say true because a pure monoply tries to eliminate all competition.True or False Economics Question?
It's true, but I think it's true because a pure monopolist has no natural competitors.True or False Economics Question?
The staement is False.


Proof: Let us considerToothbrush. There are no clear close substitute for toothbrush. A producer who produces toothbrush is not a monopoly in most countries. There are many producers who produce toothbrush. Therefor the statement that ';the pure monopolist produces a product for which there are no close substitutes is incorrect.


The pure monoplist is the one single producer supplying a particular product in the market. That there is no competition and a monopolist tries to eliminate competition are some feature of a monopoly producer and supplier. This follows from the definition of pure monopoly. The essence is single producer and supplier to the market.


How come there is a single supplier in a market? There are many reasons: the technology to produce that product is available with only one producer, or the govt. has given license to one producer to manufacture a particular product, or a natural monopoly like rail road infrastructure, or because of high capital investment and long gestation period for a new capacity manufacturing plant resulting in to a barrier to new entrant competitor in the market, or a very strong brand loyalty built up by the single producer to make it absolute difficult for a new entrant. However, a monopolist may retain his position in tact if it can create a very low cost product which others cannot produce or by various methods of cultivating goodwill, wide reaching distribution network or selling at very low prices.
Will the elimination process violate moral values? Will virtue, integrity, ethics and personal responsibility by violated or kicked out all together?





If so, that is just pure GREED and has no place in a democracy.





No one can build the absolute best of anything!


Someone else will always have a better idea.





Example, in the computer field, organizations use the brightest minds to write Anti Virus and Fire Wall programs, but all around the world, unknowns are writing code that keeps Virus and malware alive.





Think of the disaster if only one firm was writ ting Anti Virus programs! You would not be able to use your computer!