Principles of Microeconomics / Unit 8 MIC 0704 short lesson, about 20 seconds
Control of a Resource; Legal Monopoly
Captions available
The idea
Owning the only source of a key input keeps rivals out, as does a government grant of an exclusive right: a franchise, a license, a rule that only one firm may serve.
In practice
A single mine; the one licensed taxi company; first-class mail.
Where people slip
Legal monopolies are usually regulated in return, and licensing also limits supply in labor markets, as unit three noted.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
Something wrong in this lesson? Flag it