Which of the Following Is an Argument in Favor of a Competitive

question 75

Multiple Choice

Which of the following is an argument in favor of a competitive market structure rather than monopoly?

• A) Monopolies have greater ability to pursue research and design.
• B) The lure of monopoly power provides a greater incentive for invention and innovation.
• C) Monopolies produce less at a higher price than competitive markets, ceteris paribus.
• D) Economies of scale allow a single firm to produce at lower cost than in a competitive market, ceteris paribus.

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Definitions:

Research Polling

The process of collecting data and opinions from a sample of individuals to infer the preferences or behaviors of a larger population.

Hispanic Population

Refers to people in the United States who are from or have ancestors from Spanish-speaking countries, mainly in Latin America and Spain.

Cell Phones

Mobile telecommunication devices capable of making voice calls and accessing data services, including texting and internet browsing.

Gender Gap

The disparity between men and women in various aspects, such as pay, employment opportunities, political representation, and more.