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Legal monopoly |
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Legal monopolyA government-regulated firm that is legally entitled to be the only company offering a particular service in a particular area.Legal monopoly Similar MatchesMonopolyMonopolyAbsolute control of all sales and distribution in a market by one firm, due to some barrier to entry of other firms, allowing the firm to sell at a higher price than the socially optimal price. MonopolyMonopolyA market structure in which there is a single seller. Pure monopolyPure monopolyA market in which only one firm has total control over the entire market for a product due to some sort of barrier to entry for other firms, often a patent held by the controlling firm. Monopoly argumentMonopoly argumentThe monopoly argument for a tariff is the same as the optimal tariff argument. It gets its name from the fact that a country using a tariff to improve the terms of trade is acting much like a monopoly firm, restricting its sales to get a better price. |
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