A government-created monopoly arises when

A) government spending in a certain industry gives rise to monopoly power.
B) the government exercises its market control by encouraging competition among sellers.
C) the government gives a firm the exclusive right to sell some good or service.
D) the government collects taxes in a particular industry.

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Kaitlyn Quinn · Accepted Answer

Final Answer : C, Explanation :  The government creates a monopoly by granting exclusive rights to a single firm to produce and sell a particular good or service, thereby preventing other firms from entering the market and competing. This can be done for various reasons, such as to control the quality and safety of a product or service, or to ensure the provision of a public good.

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