One of the requirements for a monopoly is that
A) products are high priced.
B) there are several close substitutes for the product.
C) there is a product with no close substitutes.
D) the product cannot be produced by small firms.
E) there is no barrier to entry.

Question

Quizplus · Accepted Answer

A monopoly exists when there is a product with no close substitutes. This means that consumers have no alternative products to turn to if they are dissatisfied with the price or quality of the monopoly's product. This lack of competition allows the monopoly to charge higher prices and earn greater profits than in a competitive market where substitutes exist.

One of the Requirements for a Monopoly Is That