ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is a contract issued by a government entity that gives a firm a sole right to provide a good or service in a certain area?
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a copyright
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a license
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a patent
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a public franchise
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Explanation:
Detailed explanation-1: -a. Public franchise – the government grants one firm an exclusive right to provide a good or service to a market.
Detailed explanation-2: -Public utilities: gas, electric, water, cable TV, and local telephone service companies, are often pure monopolies.
Detailed explanation-3: -Monopoly Example #1 – Railways. Monopoly Example #2 – Luxottica. Monopoly Example #3-Microsoft. Monopoly Example #4 – AB InBev. Monopoly Example #5 – Google. Monopoly Example #6 – Patents. Monopoly Example #7 – AT&T. Monopoly Example #8 – Facebook.
There is 1 question to complete.