Investopedia explains '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.
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