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23 October, 01:30

Which best describes how the government enables government monopolies to exist? By issuing a patent by allowing natural monopolies to exist by creating and running a monopoly by owning the means of production

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  1. 23 October, 01:39
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    Answer: The answer is "By owning the means of production". This is a common practice amongst governments. For example, in a lot of countries, governments have had monopolies on public utilities, telecom or railroads industries.

    Answer "By issuing a patent" is not correct since a monopoly doesn't rely on a single patent, it depends on an industry, a company, which develops many products and, by that logic, a lot of patents.

    Answer "By allowing natural monopolies to exist" could also be correct, since sometimes there have been cases of privatization of already existing monopolies, but it is not such a common case as with owning the means of production.

    Answer "By creating and running a monopoly" is also not correct, since it would be a waste of time and resources for the government when they can just own the means of production.
  2. 23 October, 01:42
    0
    The correct answer on E2020 is

    C. by creating and running a monopoly
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