Answer. The United States Postal Service is the example of a government monopoly.
Which is an example of a government monopoly in the United State?
The United States Postal Service isexample of a government monopoly. It was formed through laws that restricted potential competitors from offering certain types of services, such as first-class and standard mail delivery.
What is a government monopoly in the US?
In economics, a government monopoly or public monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law . It is a monopoly created by the government.
Which best describes how the government enables government monopolies to exist Brainly?
Government do not allow other competitors to get in on their country anymore . By this action, they simply enables monopolies to exist. This gives people no choice but to purchase their products and services despite the higher prices.
Which of the following business is an example of a government allowed monopoly?
Today, government-granted monopolies may be found in public utility services such as public roads, mail, water supply, and electric power, as well as certain specialized and highly regulated fields such as education and gambling.
Why is the government granted a monopoly?
When a government grants a monopoly, it often regulates the price of the product or service that the firm holding the monopoly may charge its customers . ... Government-granted monopolies are usually established because they are perceived to be the best option for producers and consumers.
Which situation best describes a monopoly?
Definition: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute .
Why are monopolies banned in the US?
Competitors may be at a legitimate disadvantage if their product or service is inferior to the monopolist’s. But monopolies are illegal if they are established or maintained through improper conduct , such as exclusionary or predatory acts.
What are some examples of a monopoly?
A monopoly is a firm who is the sole seller of its product, and where there are no close substitutes. An unregulated monopoly has market power and can influence prices. Examples: Microsoft and Windows, DeBeers and diamonds, your local natural gas company .
Is government monopoly also harmful?
Monopolies over a particular commodity, market or aspect of production are considered good or economically advisable in cases where free-market competition would be economically inefficient, the price to consumers should be regulated, or high risk and high entry costs inhibit initial investment in a necessary sector.
What do all monopolies have in common?
Monopoly characteristics include profit maximizer, price maker, high barriers to entry, single seller, and price discrimination .
What are the factors of monopoly?
Description: In a monopoly market, factors like government license, ownership of resources, copyright and patent and high starting cost make an entity a single seller of goods. All these factors restrict the entry of other sellers in the market.
How does monopoly affect the economy?
In a monopoly, the firm will set a specific price for a good that is available to all consumers. ... A monopoly is less efficient in total gains from trade than a competitive market . Monopolies can become inefficient and less innovative over time because they do not have to compete with other producers in a marketplace.
What are legal monopolies and what are some examples?
Legal monopolies are created for the purposes that offer a specific product or service to consumers , at a regulated price. Various governments have imposed legal monopolies on a variety of commodities, including tobacco, salt, and iron.
What is the difference between natural and legal monopoly?
There are two types of monopoly, based on the kinds of barriers to entry they exploit. One is legal monopoly, where laws prohibit (or severely limit) competition. The other is natural monopoly, where the barriers to entry are something other than legal prohibition .
What percentage is a monopoly?
A pure monopoly is a single supplier in a market. For the purposes of regulation, monopoly power exists when a single firm controls 25% or more of a particular market.
