Legal monopoly

Legal monopoly,

Definition of Legal monopoly:

  1. A legal monopoly is initially ordered because it is perceived as the best option for both a government and its citizens. For example, in the U.S., AT&T operated as a legal monopoly until 1982 because it was deemed vital to have cheap and reliable service that was readily available to everyone. Railroads and airlines have also been operated as legal monopolies, throughout different periods in history.

  2. A legal monopoly refers to a company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price. It can either be independently run and government regulated, or both government-run and government regulated. A legal monopoly is also known as a "statutory monopoly.".

  3. Right granted by a government to a firm to be an exclusive provider of a particular good (such as radioactive material) or service (such as electricity or water supply, or minting of the countrys currency) nationwide or within a geographic area. In exchange, the government acquires the rights to monitor and regulate the monopolys activities, policies, and rates.

Meaning of Legal monopoly & Legal monopoly Definition