Which of the following are necessary characteristics of a monopoly?
(i) The firm is the sole seller of its product.
(ii) The firm's product does not have close substitutes.
(iii) The firm generates a large economic profit.
(iv) The firm is located in a small geographic market.
a. (i) and (ii)
b. (i) and (iii)
c. (ii) and (iv)
d. (i), (ii), and (iii)
Answer: A
Microeconomics
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