20
QuizMultiple Choice

Market Structures and Competition — Quiz

Question 20 • Personal Finance and Economics

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

Answer
A
by allowing natural monopolies to exist
B
by issuing a patent
C
by creating and running a monopoly
D
by owning the means of production

Explanation

A government can grant a patent, giving an inventor or company exclusive legal rights to make or sell an invention for a limited time. This prevents competitors from offering the same patented product and creates a government-enabled monopoly. So the best answer is “by issuing a patent.”

AI-written and checked against the verified answer.

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