In instances when having a single firm in the market makes sense,governments ________ to ensure a minimum level of market standard,such as safety.
A) will grant a patent or copyright
B) require licenses
C) deregulate industries
D) hand out subsidies
E) break down barriers to entry

Question

Quizplus · Accepted Answer

Requiring licenses can ensure that the single firm in the market meets certain standards and operates in a safe manner. This can also prevent potential competitors from entering the market without meeting these standards. Patents or copyrights may not be relevant in this scenario, and deregulating or handing out subsidies could potentially lead to an unsafe or unfair market. Breaking down barriers to entry may not be necessary if there is only one firm in the market.

In Instances When Having a Single Firm in the Market