A government created monopoly arises when:
A)government spending in a certain industry gives rise to monopoly power
B)the government gives a firm the exclusive right to sell some good or service
C)the government exercises its market control by encouraging competition among sellers
D)all of the above could qualify as government created monopolies

Question

Quizplus · Accepted Answer

A government created monopoly arises when the government gives a firm the exclusive right to sell some good or service. This can be done through various means such as granting patents or copyrights, giving exclusive contracts to a certain firm, or creating barriers to entry for competitors. Government spending and encouraging competition among sellers do not necessarily create monopolies.

A Government Created Monopoly Arises When