Three conditions are necessary for a monopoly position to be established in the market: 1) There must be significant barriers to entry that prevent new competitors from entering the market. These barriers could include high startup costs, proprietary technology, or government regulations. 2) There needs to be no close substitutes for the monopolized good or service. If close substitutes exist, it is difficult to exert monopoly power over price. 3) The monopolized good needs to have a large market share so it can influence the market price. Monopolies are characterized by a single seller dominating an industry.

1. Respond to the following question in at least three well composed
paragraphs: Wh
Respond to the following question in at least three well composed paragraphs: What are the
necessary conditions for a monopoly position in the market to be
established?**********************Unit 4: Chapter 10 MonopolyTopics:The Nature of
MonopolyThe Monopoly ModelAssessing MonopolyReview and PracticeLearning
Objectives:By the end of this Unit you will be able to:Define monopoly and the relationship
between price setting and monopoly power as well as list and explain the sources of
monopoly power and how they can change over time.Explain the relationship between price
and marginal revenue when a firm faces a downward-sloping demand curveApply the
marginal decision rule to explain how a monopoly maximizes profitConsidering both
advantages and disadvantages, discuss the potential effects that a monopoly may have on
consumer choices, price, quality of products, and technological innovationsDiscuss the
public policy responses to monopoly