Final answer:
Entry is completely blocked in the case of a pure monopoly. Barriers to entry such as legal restrictions, control of resources, economies of scale, and predatory practices prevent competition. Monopolies utilize exclusive control over resources or legal protections like patents and trademarks to maintain their market position.
Step-by-step explanation:
Entry is completely blocked to competitors in the case of a pure monopoly. A monopoly situation arises when a single firm or entity controls the entire market for a product or service, creating significant barriers to entry that prevent other competitors from entering the market. Barriers to entry can include legal restrictions such as patents and trademarks, control of a critical resource, economies of scale, and practices like predatory pricing.
For instance, if a company owns all the broadcasting rights for a certain radio frequency, no new entrants can offer their services in that space, thereby maintaining the company's monopoly. Similarly, intellectual property laws protect inventions, designs, and brand names, ensuring that only the holder can exploit these for a period of time. The presence of large economies of scale might mean that one firm can produce at a lower cost than any potential competitors, hence sustaining the monopoly.
Classifying barriers to entry includes understanding whether they are government-enforced, such as licensing regulations, or arise from the business environment, like a well-known trademark or ownership of unique resources.