Final answer:
The correct answer is (d) (i), (ii), (iii), and (iv).
Step-by-step explanation:
In order for a firm to be considered a monopoly, it must possess certain characteristics:
(i) The firm is the sole seller of its product. This means that there are no other firms in the market offering the same product. For example, Microsoft is considered a monopoly in the operating systems market.
(ii) The firm's product does not have close substitutes. This means that there are no other products that are similar or can be easily substituted for the firm's product. For instance, if a firm produces a unique medicine that has no close alternatives, it can be classified as a monopoly.
(iii) The firm generates a large economic profit. Monopolies have the power to set prices higher than their production costs, allowing them to earn significant profits. However, it is important to note that not all monopolies necessarily generate large profits.
(iv) The firm is located in a small geographic market. This means that the firm operates in a limited geographical area, restricting competition from other firms. For example, a small town may have only one grocery store, which would be a monopoly in that specific area.