No firm is completely sheltered from rivals; all firms compete for consumer dollars. If that is the so then pure monopoly does not exist. Do you agree?” I would have to agree with this statement. My text book stated that “pure monopoly exists when a single firm is the sole producer of a product for which there are no close substitutes (Brue, McConnell &Flynn, 2010).”
In some cases pure monopoly does exist but we rarely hear about it, there are less pure forms of monopoly and near monopolies. Examples of monopoly would be utilities and professional sports leagues. With professional sports leagues and monopoly being involved, they suffer major losses of consumer welfare due to some restrictions on supply. Pro sports leagues are really the sole provider (supplier) of specific services in large geographic areas (Brue, McConnell &Flynn, 2010). Exclusive territories of sport teams give owners market power, and they also operate as cartels in the form of monopoly.