Describe How Government Is Involved in Creating a Monopoly

question 46

Essay

Describe how government is involved in creating a monopoly. Why might the government create one? Give an example.

---

Definitions:

Profit Margins

A financial metric that measures the percentage of profit a company makes for each dollar of sales, indicating how effectively a company is managing its expenses relative to its net sales.

Management Structure

The hierarchical arrangement of lines of authority, communications, rights, and duties within an organization.

Franchise

A business model that allows individuals to own and operate their branch or location of an existing larger brand or business.

Disadvantages

The negative or less favorable aspects of a situation, decision, or business strategy.