Which of the following best completes the statement: 'A pure monopoly is a price ___ engaging in non-price competition.'?

• A. taker
• B. discriminator
• C. regulator
• D. maker

Answer: (D)

Verified step by step guidance

1. Understand the concept of a pure monopoly: it is a market structure where a single firm is the sole seller of a product with no close substitutes.
2. Recall that in a pure monopoly, the firm has significant control over the price because it is the only supplier, so it is considered a price maker rather than a price taker.
3. Recognize that 'price taker' refers to firms in perfectly competitive markets that accept the market price, which does not apply to monopolies.
4. Note that 'price discriminator' refers to a firm that charges different prices to different consumers, which is a specific pricing strategy but not the general characteristic of a pure monopoly.
5. Understand that 'price regulator' is not a term used to describe the monopoly's pricing power; instead, regulatory bodies may regulate monopolies, but the monopoly itself is a price maker.