ovided. Use a blue or black pen. Don't write Remember to complete the submission information on every page you turn in. 1. Monopoly A. A monopoly occurs when an industry has only one firm that produces a product and there are no close substitutes. Describe the conditions that lead to a monopoly. (6 points) B. A monopolist does not have a guaranteed profit. Draw a graph that demonstrates a monopolist that is losing money but will not shut down. (4 points) Explain how your graph describes this situation. (3 points)