A government-created monopoly arises when
A)government spending in a certain industry gives rise to monopoly power.
B)the government exercises its market control by encouraging competition among sellers.
C)the government gives a firm the exclusive right to sell some good or service.
D)Both a and c are correct.

Question

Quizplus · Accepted Answer

A government-created monopoly occurs when the government grants a firm exclusive rights to sell a particular good or service, thereby eliminating competition.

A Government-Created Monopoly Arises When