Economists No Longer Attack Industry Concentration with the Same Fervor

question 159

Multiple Choice

Economists no longer attack industry concentration with the same fervor they once did because

• A) even firms in highly concentrated industries can be pushed to produce efficiently under certain market circumstances.
• B) the benefits of product differentiation and product competition are illusory.
• C) small firms do the most research in the United States.
• D) substantial economies of scale result in completely competitive market structures.

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Definitions:

Enforcement Mechanism

Procedures or methods used to enforce compliance with laws, regulations, or agreements.

Collective Bargaining

The process by which employers and unions negotiate terms of employment, including wages, hours, and working conditions.

Government Regulations

Rules and directives created by government agencies to control or guide specific industries or activities.

Reciprocal Trading

A trading system where countries mutually agree to provide comparable benefits and privileges to each other, often involving tariff reductions or eliminations.