20
QuizMultiple Choice

Microeconomics — Test

Question 20 • Personal Finance and Economics

Which best describes how the government sanctions technological monopolies?

Answer
A
by issuing a patent for the technology
B
by creating the technology itself
C
by prohibiting others from entering the market
D
by authorizing one producer

Explanation

A patent gives its holder the legal right to control how an invention is used or produced for a limited time. This protects the inventor from unauthorized competition and can create a technological monopoly. The government does not need to create the technology or authorize only one producer outright.

AI-written and checked against the verified answer.

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