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:

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Generativity Versus Self-Absorption

A stage in Erik Erikson’s theory of psychosocial development where middle-aged adults face the challenge of contributing to the next generation or becoming self-centered.

Industry Versus Inferiority

A stage in Erik Erikson's theory of psychosocial development, typically occurring during childhood, where success fosters a sense of competence, while failure results in feelings of inferiority.

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