Title: Government-granted monopoly - Wikipedia
Headings: Government-granted monopoly
Government-granted monopoly
Contents
History
Patent
Copyright
Trademark
Directly mandated
Background of the role of government
Natural monopolies
Alternative interpretation
Criticism
Examples
See also
Notes
References
External links

Content: Though other forms of copy prevention aren't prohibited, requiring Macrovision effectively gives it a monopoly and prevents more effective copy prevention methods from being developed. Background of the role of government
The theory of rent seeking - that is, artificially created socially harmful competition for scarcity due to scarcity - can be caused by monopolies, foreign trade restrictions and state subsidies. Governments can also create monopolies in order to reduce inefficiency of market as: scarcity of resources, reduced wealth-creation, lost government revenue, heightened income inequality, incomplete markets. The reason also can be simply as economies of scale, as well as the government can use its power to gather influence on the market by regulation. Companies can also cause rent seeking: a company has a monopoly power – there is no other competitor on the market – then the company can limit the amount produced, so creating scarcity. Therefore, it can raise the price in principle, so it can earn more than its costs, or what other factors could make. While monopolies, for example, can be considered a market failure as prices rise and output falls, monopoly creation is not always a strict market phenomena. Costs of government policies sometimes exceed benefits.