Which of the following is a characteristic of a monopoly?

Question

Monopoly is not a market structure that is frequently observed in the real world.

Cost for entry is minimal.

Legal barriers, such as patents and copyrights, often prevent firms from entering the industry.

The firm is a price taker.

Answer 1

A characteristic of a monopoly is:

Legal barriers, such as patents and copyrights, often prevent firms from entering the industry.

This points to the fact that monopolies can maintain their market power due to significant obstacles that prevent other firms from competing. In contrast, a monopoly is characterized by being a price maker (not a price taker), and the cost for entry is generally high, not minimal. Monopolies do occur in the real world, although they are less common than other market structures.