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Chapter 9: Q.10 (page 232)

What is a legal monopoly?

Short Answer

Expert verified

A monopoly set up by law is referred to as legal monopoly.

Step by step solution

01

Step 1. Monopoly

A monopoly is a market structure in which there is only one seller who produces a good or service with no close substitutes.

02

Step 2. Example

Monopolies can be created through laws for patent, trademark, copyright laws.

If a company innovate something new and registered a patent for it that means now the company has a monopoly on that innovation

if any competitor copies that product for any purpose that it would be considered unlawful.

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Most popular questions from this chapter

What is predatory pricing?

What legal mechanisms protect intellectual property?

How is intellectual property different from other

property?

If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?

How is monopoly different from the perfect competition?
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