Place the items that are characteristics of a monopoly in th

Place the items that are characteristics of a monopoly in the box below. If an item does not describe a monopoly, leave it unplaced. Monopoly Characteristics:

Solution

A monopoly market is characterized by:

1. Only 1 firm in the industry

2. No close substitutes exist

3. Significant barriers to entry exists, which prevent other firms from entering

4. The firm is price maker (i.e. sets his own price).