The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-A monopoly exists when there is only one producer in an industry, and no close substitutes for the product exist.

Question

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4
 
-A monopoly exists when there is only one producer in an industry, and no close substitutes for the product exist.

Quizplus · Accepted Answer

A monopoly is characterized by the absence of competition, which can result in high prices and inferior products. The key aspect of a monopoly is that there is only one producer in the market for a particular good or service, and there are no close substitutes for that product, giving the producer significant market power.

The Figure Below Shows the Demand (D) and Supply (S)