The lack of competition within a monopoly means that

The lack of competition within a monopoly means that

1: offered goods and services are lackluster.

2: the product’s market is small.

3: consumers must look elsewhere to find options.

4: monopolists set their own prices.

Answer: 4: monopolists set their own prices.

As for the characteristics of this market structure, it is defined by the existence of one seller or provider of a particular good or service and the absence of close substitutes. To be specific, due to the absence of rivals, the monopolist working in the industry does not have a competitive pressure and has a high level of the market. Consequently, monopolists have an autonomy to fix the prices for the goods or services that are to be sold since consumers have no other choice but to buy from the monopolists since other similar firms who produce and sell similar products are not an option. This pricing power is one of the features that define a monopoly and enables the monopolist to set higher prices relative to the situation that would occur in more competitive markets.