
38 Chapter 3
Finally, an important feature of a pure monopoly is that a monopolized industry is a single-rm
industry, i.e., there is no distinction between the rm and the industry. erefore, there is no distinction
between market demand curve and monopoly rm’s own demand curve, i.e., the demand curve for the
monopoly rm’s product is same as the market demand curve.
Sources and Kinds of Monopolies
e emergence and survival of monopoly are attributed to the factors which prevent the entry of other
rms into the industry. e barriers to entry are, therefore, the sources of monopoly power. e major
sources of barriers to entry are (i) legal ...