ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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franchise
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license
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market power
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monopoly
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Detailed explanation-1: -A franchise is a contract that gives a single firm the right to sell its goods within an exclusive market. A license is a government-issued right to operate a business.
Detailed explanation-2: -Oligopsony describes a situation where employer market power persists despite competition with other employers-the number of employers does not need to be small. Monopsonistic competition is oligopsony with free entry, so that employer profits are driven to zero. “The Law of One Wage”
Detailed explanation-3: -What Is a Franchised Monopoly? A franchised monopoly refers to a company, or individual, that is sheltered from competition by virtue of an exclusive license or patent granted by the government, as the government believes it to be a beneficial component of the economy.
Detailed explanation-4: -a. Public franchise – the government grants one firm an exclusive right to provide a good or service to a market.