Question

Government Barriers to entry Questions

a) Governments provide patents to firms that develop new technology such as pharmaceuticals. Why?

b) Governments enforce copyright laws for creators of creative works, such as music, software and books. Why?

c) Governments require licenses to enter some industries, such as law, medicine, cosmology and taxi driving. Why?

d) Governments sometimes grant one company the exclusive rights to an industry, such as cities that have one trash provider. Why?

e) Governments sometimes are the monopolist, such as the USPS or (in other countries) where utilities are sometimes government-owned. Why?