Examples of Government monopoly in the following topics:
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- There are two types of government-initiated monopoly: a government monopoly and a government-granted monopoly.
- There are instances in which the government initiates monopolies, creating a government-granted monopoly or a government monopoly.
- Government-granted monopolies often closely resemble government monopolies in many respects, but the two are distinguished by the decision-making structure of the monopolist.
- In a government monopoly, the holder of the monopoly is formally the government itself and the group of people who make business decisions is an agency under the government's direct authority.
- In a government monopoly, an agency under the direct authority of the government itself holds the monopoly, and the monopoly is sustained by the enforcement of laws and regulations that ban competition or reserve exclusive control over factors of production to the government.
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- Monopolies on the whole are governed under antitrust laws, both on a national level in most countries and on an international level via institutions such as the World Trade Organization (WTO).
- In short, the government can provide financial support via subsidies to new entrants to ensure the competitive environment is more equitable.
- In extreme circumstances it is also a viable option for governments to break up monopolies through the legal processes.
- AT&T is a classic example of a government-backed monopoly in the middle of the 20th century, as the fixed investment of land lines for phones at that time was substantial.
- It was not practical to foster competition as a result, and the government recognized the necessity for a monopoly (until 1984, when AT&T was divested).
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- Monopolies exhibit decreasing costs as output increases.
- There are cases in which a government agency is the sole provider of a particular good or service and competition is prohibited by law.
- For example, in many countries, the postal system is run by the government with competition forbidden by law in some or all services.
- Government monopolies in public utilities, telecommunications systems, and railroads have also historically been common.
- In other instances, the government may be an invested partner in a monopoly rather than a sole owner.
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- The government creates legal barriers through patents, copyrights, and granting exclusive rights to companies.
- Intellectual property rights, including copyright and patents, are an important example of legal barriers that give rise to monopolies.
- A patent is a limited property right the government gives inventors in exchange for their agreement to share the details of their invention with the public.
- It is also possible that there is a monopoly because the government has granted a single company exclusive or special rights.
- Copyright is an example of a temporary legal monopoly granted to creators of original creative works.
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- A monopoly can diminish consumer choice, reduce incentives to innovate, and control supply to enforce inequitable prices in a society.
- In order to ensure that suppliers do not take on too much power (such as the case of monopolies and oligopolies), government regulations and antitrust laws are a necessary component of the economic perspective.
- Through utilizing this control strategically, a profit-maximizing monopoly could create the following societal risks:
- As a result, a monopoly causes deadweight loss, an inefficient economic outcome.
- Outline the effect of a monopoly on producer, consumer, and total surplus
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- Public utility companies tend to be monopolies.
- Monopoly power comes from markets that have high barriers to entry.
- Monopoly and perfect competition mark the two extremes of market structures, but there are some similarities between firms in a perfectly competitive market and monopoly firms.
- For this reason, governments often seek to regulate monopolies and encourage increased competition.
- This creates a monopoly.
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- Monopolies rarely occur in a pure form.
- When the term "monopoly" is used it is usually referring to a degree of monopoly or market power.
- ALCOA's monopoly began when the government gave them a patent on a low cost method of reducing bauxite to aluminum.
- In fact, the British colonies that became the United States and Canada were the result or grants from the British government.
- Monopoly or market power is suggested by two things.
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- Monopolies were among the first business entities the U.S. government attempted to regulate in the public interest.
- In the early 1900s, the government used the act to break up John D.
- Critics believed that even these new anti-monopoly tools were not fully effective.
- Steel was not a monopoly because it did not engage in "unreasonable" restraint of trade.
- The government has continued to pursue antitrust prosecutions since World War II.
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- Government regulation was justified on the theory that telephone companies, like electric utilities, were natural monopolies.
- In 1984, a court effectively ended AT&T's telephone monopoly, forcing the giant to spin off its regional subsidiaries.
- A decade later, pressure grew to break up the Baby Bells' monopoly over local telephone service.
- But economists said the enormous power of the regional monopolies inhibited the development of these alternatives.
- It said the regional monopolies had to allow new competitors to link with their networks.
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- A monopoly is a specific type of economic market structure.
- Profit maximizer: a monopoly maximizes profits.
- Price maker: the monopoly decides the price of the good or product being sold.
- High barriers to entry: other sellers are unable to enter the market of the monopoly.
- In a monopoly, specific sources generate the individual control of the market.