WAEC Economics 2017 Theory — Question 16

Model answer

(i) Act of parliament: This has to do with when the law establishes the monopoly and gives it the exclusion right to run the business. (ii) Copyright: This has to do with a situation where the material is developed originally by the person. This gives such person exclusive right to the material. (iii) Natural monopoly: This has to do with a situation where the monopoly is created as a result of some natural forces which cannot be acquired. (iv) Cartel: This is a situation where monopoly is created by coming together of firms that produces similar product to regulate output.