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Pure Monopoly:
Pure monopoly examined the market structure that is generally regarded as the polar opposite of perfect competition – i.e. the monopoly model. Like the perfect competition model, the monopoly model is designed to be an extreme case and it is rarely found in the real world. However, the model offers an important benchmark against which to compare less extreme forms of monopoly power.
Consider a decision faced by a cattle breeder. The breeder must decide how many cattle he should sell in the market each year and how many he should retain for breeding purposes.
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b) Why is monopoly considered to be generally against public interests, and what policy instruments can be used to regulate monopolies?
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