The United States Post Office

Question

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The United States Post Office has a legal monopoly in the provision of first-class mail service, meaning that no private company can offer this service for letters and items weighing less than 13 ounces. However, the USPS does face competition from other delivery services for package delivery and other types of mail services. The USPS cannot ignore the prices charged by its rivals, as it must remain competitive in the market. While the USPS is an example of a monopoly, it is not one that results from the ownership of a key resource, as its status as a monopoly is due to legal protection rather than exclusive control over a resource.