Final answer:
Monopolies do not face competition, making them highly profitable. Every firm desires a monopoly, but significant barriers to entry, such as legal, technological, or market forces, must be in place to establish and maintain one.
Step-by-step explanation:
The student's question 'Because monopolies do not face _____, every firm would like to have a _____. But to have a monopoly, barriers to entering the market must be________.' can be answered with an understanding of the nature of monopolies and market entry. Monopolies do not face competition, and therefore every firm would like to have a monopoly. However, to maintain a monopoly, barriers to entering the market must be significant.
Barriers to entry are various legal, technological, or market forces that discourage or prevent potential competitors from entering the market, ensuring that the monopoly can maintain its exclusive position and economic profits. These barriers can include control of a key resource, economies of scale, or legal protections such as patents and copyrights. A familiar example of a barrier to entry is the limited number of radio frequencies available for broadcasting; once all are owned, no new competitors can enter the market.