Answer to Question #108680 in Microeconomics for SIBONGISENI MANHISSA

Question

What is the fundamental difference between state- supported firm monopoly and a
monopoly that develops in the market?

Answer 1

 State- supported firm monopoly is a type of monopoly whereby a firm enjoys government protection through regulations and policies such as patents and copyrights to be the sole provider of certain services or products in a market whereas a monopoly that develops in a market is whereby a firm gains control of a critical resource that other competing firms cannot access and thus becomes a sole provider of a particular commodity.