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7.1.1   Assume that you are a manager of one of the following firms. Use the defining...

7.1.1   Assume that you are a manager of one of the following firms. Use the defining characteristics of pure monopoly to determine whether or not your firm is a pure monopolist, and explain:

(a) a local power company;

(b) Greyhound Bus Company;

(c) Microsoft;

(d) Walmart;   

(e) Walt Disney.

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Answer #1

A pure monopoly is the market structure where there is only a single firm in the market to provide good and there are no close substitutes for those goods as well.

a) Local power company: A pure monopoly, only power supplier and no close substitute for electricity.

b) Greyhound Bus company: Not a monopoly there are many substitutes for a bus company in the market.

c) Microsoft: Not a monopoly, Apple, and other companies can provide same products as a Microsoft.

d) Walmart: Not a monopoly, There are many different grocery stores in the market and Walmart product have close substitutes.

e) Walt Disney: Disney has a monopoly over Mickey Mouse and other related character but other services like the amusement park and other TV shows doesn't have a monopoly.   

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