For a firm to become a monopoly in an industry

Question

Quizplus · Accepted Answer

Barriers to entry prevent new firms from entering the market and competing with the existing firm, allowing the firm to become a monopoly. This can be due to factors such as high start-up costs, control of key resources, or government regulations. Charging higher prices, producing higher quality products, or engaging in unfair practices are not necessary conditions for a firm to become a monopoly, although these may be the result of the firm's market power once it has achieved monopoly status.

For a Firm to Become a Monopoly in an Industry