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# Home Market Monopoly

## Definition

The exclusive control over domestic sales of goods produced within a country, achieved through legal restrictions on foreign imports. This monopoly allows domestic producers to sell without foreign competition, potentially at higher prices and with less incentive for efficiency improvements.

## Source Chapter

Book IV, Chapter 2

## Context

Smith discusses how home market monopolies are created through import restraints and examines their effects on domestic industry. He argues that while such monopolies may benefit specific producers, they often lead to inefficient resource allocation and higher prices for consumers.

## Economic Domain

Regulation

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