| Government Monopolies |
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| CATEGORIES ABOUT GOVERNMENT MONOPOLY | |
| market failure | |
| monopoly economics | |
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A government monopoly may be run by any level of government - national, regional, local; for levels below the national, it is a Local Monopoly . The term state monopoly usually means a government monopoly run by the national government, although it may also refer to monopolies run by regional entities called "states" (notably the US States ). EXAMPLES In many countries, the Postal System is run by the government with competition forbidden by law in some or all services. Also, government monopolies on Public Utilities and Railroads have historically been common, though recent decades have seen a strong Privatization trend throughout the Industrialized World . Governments often create or allow monopolies to exist and grant them patents in order to help grow a nation. This will limit entry and allow the patent-holding firm to earn a monopoly profit from an invention-a reward for developing the new product. Without it incentives would fall. SEE ALSO |
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