This occurs when its business activities exert an extensive influence within the market, can act autonomously of any competitors, and potential competitors are unable to successfully compete with it.
The term state monopoly usually means a government monopoly run by the national government.Ĭharacteristics of state monopolies Ī state monopoly can be characterized by its commercial behavior not being effectively limited by the competitive pressures of private organisations.
It is usually distinguished from a government-granted monopoly, where the government grants a monopoly to a private individual or company.Ī government monopoly may be run by any level of government-national, regional, local for levels below the national, it is a local monopoly. It is a monopoly created, owned, and operated by the government.
In economics, a government monopoly or public monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. Government control of an industry or economic sector
