A monopoly exists in an industry when there are a limited number of sellers and high start-up costs keep new competitors from entering.

Question

Quizplus · Accepted Answer

A monopoly exists when there is only one seller in the market, not just a limited number. High start-up costs can be a barrier to entry, but the defining characteristic of a monopoly is the absence of competition, meaning there is only one firm dominating the entire market.

A Monopoly Exists in an Industry When There Are a Limited