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

question 27

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 goods 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:

Right to Strike

The legal entitlement of workers to engage in strike actions as a means of bargaining and advocating for better working conditions or wages.

Successorship Clause

A provision in a labor contract that ensures a union's collective bargaining agreement is honored by any new owner or operator of the business.

Union Recognition Clause

A provision in a labor contract that establishes an employer's acknowledgment of a union's legitimacy and right to represent its members.

Injunction

A legal order by a court requiring a person to do or cease doing a specific action, often used in labor disputes to restrict certain actions by parties.