Question

Limited government licenses that create a monopoly do so because the license generates a marginal cost advantage. the monopoly will become a natural monopoly. a barrier to enter the market exists. all of the above.

Answer 1

Limited government licences that create a monopoly do so because a barrier to enter the market exists. 
Monopoly can be established by the government by a form of integration or form naturally, it can preserve excess profit because barriers to entry prevent competitors from entering the market.