Monopoly businesses have no competition. They are the only ones permitted or licensed to operate that kind of business. Government grant some businesses monopoly license. What can make a business favored to obtain such license?
Under what circumstance can a business be granted license to operate as a monopoly?
- Thread starter Niyi Briggs
- Start date
It depends on the nature of your business. In my location, gas, electricity, subway system have been permitted by the government to operate as a monopoly. Public bus companies are also granted such status for certain routes.
One other reason a business might be licensed to operate as a monopoly is if it is the pioneer im that line of business in the country. It is often granted to pioneer manufacturing firms to encourage and help them stand on their feet before facing any competition.
- Thread starter
- #5
Microsoft was given a monopoly to help the company to develop what it started and gain from it. Sometimes, it can just be gotten from lobbying the government so that the intended monopolist would make more profits.
Monopolistic rights can be given to a business that knows how to play the politics well and be in the good books of the present government.
It seems that it is not a good practice. I will feel bad for some small-scale businesses if this happens.
