Answer:
Monopoly occurs when there is a no competition and business owners can set any prices for goods.
Explanation
A monopolistic market structure arises when a single entrepreneur dominates and controls the market for a given product and service.
Sometimes the state creates legal barriers to entry into the industry by granting exclusive rights to individual firms to manufacture and sell certain types of goods or services (licenses) or by granting patents that protect copyrights. In this case, it is about a closed monopoly, implying its legal protection from competitors.
In case of open monopoly, a firm may be the only seller if it enters the market with a completely new type of product or service. Competitors for this company will appear only after some time, during which the company will be a monopolist. This kind of monopoly is called open, because the company does not have any special protection against competition.
