In instances when having a single firm in the market makes sense,governments ________ to minimize negative externalities.
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 help ensure that the single firm operates in a way that minimizes negative externalities. It allows the government to put regulations and restrictions on the firm, thereby preventing it from causing harm to the environment, consumers, or other businesses. This ensures that the benefits of having a single firm (such as economies of scale) do not come at the expense of the public or other businesses.

In Instances When Having a Single Firm in the Market