A monopoly arises for two key reasons,which are
A)barriers to entry and no close substitutes.
B)franchises and barriers to entry.
C)barriers to entry and close substitutes.
D)close substitutes and no barriers to entry.
E)natural and legal

Question

Quizplus · Accepted Answer

A monopoly arises when there are barriers to entry, which prevent new firms from entering the market and competing with the existing firm. Additionally, there are no close substitutes for the product or service being offered by the monopoly, so consumers have no other options. This combination of barriers to entry and lack of substitutes gives the monopoly market power, and the ability to charge a higher price than would be possible in a more competitive market.

A Monopoly Arises for Two Key Reasons,which Are