Franchised Monopoly


DEFINITION of 'Franchised Monopoly'

Monopoly status given by the government to a company. A franchised monopoly is sheltered from competition by virtue of an exclusive license or patent granted to it by the government. Franchised monopolies are legal.

BREAKING DOWN 'Franchised Monopoly'

In most nations, franchised monopolies can be found in essential sectors such as transportation, water supply and power. In many countries, primarily developing nations, natural resources such as oil and gas, and metals and minerals are also controlled by government-sanctioned monopolies. While one argument in favor of franchised monopolies is that they ensure that control over essential industries remains in the hands of the public, opponents of such monopolies claim that they promote favoritism and introduce market distortions.

  1. Monopolistic Competition

    A type of competition within an industry where: 1. All firms ...
  2. Natural Monopoly

    A type of monopoly that exists as a result of the high fixed ...
  3. Monopoly

    A situation in which a single company or group owns all or nearly ...
  4. Legal Monopoly

    A company that is operating as a monopoly under a government ...
  5. Oligopoly

    A situation in which a particular market is controlled by a small ...
  6. Elastic

    A situation in which the supply and demand for a good or service ...
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