In the market, consumers will always have more purchasing power in a monosomic market than in a monopoly where the sole producer has the power. Monopolies form in several situations, typically through numerous barriers to entry or government regulation. In some cases, the government relegates a new monopoly to a market it owns. If we were to look at an example of a government-owned monopoly in Ontario, the first thing that might come up among university students of legal drinking age (and probably underage students too!) would be the LCBO. Those students who have traveled to any other province, will find many sellers in the market known as monopoly market. One of the advantages of having a monopolistic system There are numerous approaches that can take the teeth out of economists' bite, and they all involve government. The government can do one of the following: create laws that encourage competitive markets, regulate monopoly, or own the economy” (CPE p.131). The Ontario government has decided on the third option. Typically, governments take control of a monopoly for social reasons, such as cultivating an industry that otherwise could not materialize domestically without the government providing that service (Air Canada and Petro-Canada were created for these reasons). Selling liquor is very different from this as there would be few barriers to trade in the free market. Convenience stores and many other merchandisers could easily provide the service provided by LCBO at a cost significantly less than the cost of producing the item. Therefore, the government-run artificial market is not as efficient as many monopolies. However, the government-held monopoly is producing a significant corporate surplus at the price of the deadweight loss it creates as resources are not managed as efficiently as possible. In a recent report, arguing that consumers could pay less for alcohol and the province could brew more profits from alcohol sales if the government opened the business to more retailers. This report claims that the LCBO is effectively forgoing revenue by preserving its virtual monopoly on alcohol sales. These changes would increase available choice and reduce prices for Ontario consumers, as well as improve the competitiveness of Ontario's smaller wineries and breweries and generate more revenue for the government. The government's reasoning, by creating deadweight loss by the government, is selling achaul in a socially responsible manner