Question

match each of the following examples with the correct monopoly type. a patent gives a pharmaceutical company the exclusive right to produce a medication for 20 years. a firm owns the only source of fresh water in a small country. a trash collection company experiences economies of scale by serving an entire region. a countrys state - run airline is the only domestic airline that is allowed to operate there. an electricity company faces a high up - front investment, which other companies cannot match. the only known deposit of a rare mineral is owned by a single company. resource monopolies government - created monopolies natural monopolies

Explanation:

1. A patent is a government - granted exclusive right, so it's a government - created monopoly.
2. Owning the only source of fresh water is control over a resource, making it a resource monopoly.
3. A trash collection company with economies of scale serving an entire region is a natural monopoly due to cost - efficiency reasons.
4. A state - run airline being the only domestic airline allowed to operate is a government - created monopoly.
5. An electricity company with high upfront investment that others can't match is a natural monopoly because of the high cost barrier.
6. Owning the only known deposit of a rare mineral is a resource monopoly.

Answer:

1. Government - created monopolies
2. Resource monopolies
3. Natural monopolies
4. Government - created monopolies
5. Natural monopolies
6. Resource monopolies