The monopoly created by copyright on a literary work is an example of which type of monopoly?

• A. Natural
• B. Legal
• C. Geographical
• D. Technological

Answer: (B)

Copyright creates a legal monopoly. When a literary work is protected by copyright, the government grants the author exclusive rights to reproduce, distribute, perform, or adapt that work. Because these rights are backed by law, the author can control who uses the work and how it’s used, making this a monopoly established through legal authority rather than market size, location, or a technological edge. It’s not a natural monopoly (which comes from economies of scale), not a geographical monopoly (which depends on location), and not a technological monopoly (which comes from control of a specific invention or technique). The protection is legal in nature and is limited in time, after which the work enters the public domain.