A firm given exclusive rights by the government to do business in a particular area is a(n)________ monopoly.

Question

Quizplus · Accepted Answer

A franchise is a type of monopoly where a firm is given exclusive rights to do business in a particular area. This is usually granted by the government, and the franchisee pays a fee or royalty to the franchisor for the right to use their trademark, products, and services. Examples of franchise monopolies include fast-food chains like McDonald's or Subway, which have exclusive rights to sell their products in certain locations. The other options are not relevant to describing this type of monopoly.

A Firm Given Exclusive Rights by the Government to Do