18
QuizMultiple Choice

Market Structures and Competition — Quiz

Question 18 • Personal Finance and Economics

Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication?

Answer
A
government monopoly
B
de facto monopoly
C
natural monopoly
D
technological monopoly

Explanation

A company that develops a new medication may hold exclusive rights to produce it because of its invention or patent. That gives Wellness Pharmaceuticals a technological monopoly on Lexabuzac. A natural monopoly arises from cost conditions, while a government monopoly is run or owned by the government.

AI-written and checked against the verified answer.

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