One feature of pure monopoly is that the firm is a price maker. This type of monopoly exists when one certain company is only the source for a certain product and there are no any present substitutes in the market. For this case, the business firm is equal to the industry. Due to this, they would have the freedom of setting their own prices since they have the freedom to control their supply.. This type of monopoly is very rare since to do this, the company should be able to block and prevent all possible competitors from entering. Examples of these would be utility companies that are present in certain small towns where they are the only source of the utilities.
