What does a government do when it wants to give an exclusive right to one firm to produce a product?

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Granting a patent or copyright to an individual or firm gives them exclusive rights to produce a product or use a certain process for a specific period of time. This is commonly done by governments to stimulate innovation and incentivize investment in research and development. Tariffs and quotas are trade policy tools used to restrict imports and protect domestic industries, while antitrust laws are used to prevent monopolistic practices and promote competition.

What Does a Government Do When It Wants to Give