Legal Monopolies

There are some kinds of legal monopolies such as: public utilities, patents, copyrights and trademarks.

Public Utilities ( коммунальные услуги) are privately owned firms that provide an essential public service. Your local electric, gas and water companies are public utilities.

Patents as Monopolies. It gives the inventor exclusive use of a product or idea for 17 years. You may sell your idea or give it away, but it is yours to do with as you wish.

A copyright – the exclusive right to sell or reproduce their original writing and artistic works. That copyright is a special monopoly for the lifetime of the author plus fifty years.

Trademarks are special designs, names or symbols that identify a product, service or company. “Coke” is a trademark of the Coca-Cola Company. Competitors are forbidden from using registered.

Characteristics of Economic Markets
Number of firms	Many independent firms. None able to control the market.	Many firms providing similar goods and services.	A few large firms providing similar goods and services.	A single large firm.
Control over price	None. Market determines price.	Influence limited by the availability of substitutes.	Often influenced by a “price leader.”	Much control.
Product different-tiation	None. Products uniform and of equal quality.	Products and services differentiated to meet the needs of specific markets.	Significant for some products like automobiles. Little for standardized products like gasoline.	None.
Ease of entry	Relatively easy to enter or leave the market.	Relatively easy to enter or leave the market.	Difficult. Often requires large capital investments	Very difficult.

8. What do governments do in mixed economies?

Most resources in Western economies are allocated through markets. However, governments also play a major role. They set the legal rules; in the marketplace they buy goods and services; they produce some services, such as defence; and they make payments such as social security benefits. They financing themselves through taxation and borrowing, governments influence the prices, interest rates, and production.

What do governments actually do?

Create Laws, Rules and Regulations

Governments determine the legal framework that sets the basic rules for the ownership of property and the operation of markets. In addition, governments at all levels regulate economic behaviour, setting detailed rules for the operation of businesses. Regulations include planning permission (how land can be used and where businesses can locate), health and safety regulations, and attempts to prevent some types of business, such as the sale of heroin

Buy and Sell Goods and Services

Governments buy and produce many goods and services, such as defence, education, parks, and roads, which they provide to firms and households. Most of these goods, such defence and education, are provided to users free of direct charge (бесплатно). Some, such as local bus rides are paid for directly by the user.

Governments, like private firms, must decide what to buy and what to produce themselves. In some countries, the phone company is government-owned; in most countries, the government owns and operates urban transport such as buses and the underground.

Make Transfer Payments

Governments also make transfer payments, such as social security and unemployment benefits, to individuals. Transfer payments are payments made to individuals without requiring the provision (предоставление) of any service in return. Examples are social security, retirement pensions, unemployment benefits, and, in some countries, food stamps. Government spending is the sum of government purchases of goods and services and transfer payments.