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    beneficial monopolies

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    In certain cases, a market may function more efficiently if there is only one producer. Please identify markets where monopolies may beneficial, and explain why this is the case. Industries that the government allows monopolies to exist and where they permit and regulate these industries are acceptable.

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    Consider your local subway and buses. This is clearly a monopoly since there is only one company operating the subway and buses.

    If competition is allowed, then competitive operators will only keep routes that are frequently used, while ...

    Solution Summary

    The expert examines the beneficial monopolies.