Question

Which best describes how the government enables government monopolies to exist?

Answer 1

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.

Answer 2

Answer;

By creating and running a monopoly

Explanation;

-A monopoly is a situation in which a single company or group owns all or nearly all of the market for a given type of product or service .

-There are instances in which the government initiates monopolies, creating a government-granted monopoly or a government monopoly.

-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. For example, the United States Postal Service. It was created through laws that ban potential competitors from offering certain types of services, such as first-class and standard mail delivery.