Franchised Monopoly

Franchised Monopoly – This is a monopoly that is authorized by the government. The reason for allowing such a monopoly can be because the product or service involved may not support more than one company. Such is often when there is a large or vast nature to the economic scale of this product that the demand requires only one producer for the sake of efficiency. Such can also be relevant when a patent is involved. Which is one means used to implement such monopolies. However, it can apply to any product that there is only an adequate market for a single producer.