Question

Identify situations that can give rise to monopoly

Short answer

As a result, there is no variation between firm's offering and market supply in an extremely pure monopoly.

Step-by-step solution

Introduction

In a rather market system, there are also many organizations, but neither of them would be especially large. During an excessively monopolistic market, on the other hand, there is just one big company. Now this organization supports the entire sector.

Given Information

The cartel doesn't really experience any competition since there are no close substitutes.

Explanation

Requirements establish an oligopolistic industry framework. For starters, the market is focused on a single company. Second, there are more than hurdles. These hurdles are so strong that another company will be unable to join the market. Third, no close alternatives exist for such nice that the monopolistic company produces.