Which of the Following Supports the Contention That Monopolistic Competitors

question 135

Multiple Choice

Which of the following supports the contention that monopolistic competitors have a strong incentive to engage in R&D?

• A) Entry to monopolistic competitive industries is relatively easy, and thus profit from innovation is quickly competed away.
• B) Most monopolistic competitive industries are decreasing-cost industries.
• C) The desire to differentiate products from competitors may motivate monopolistic competitors to engage in R&D.
• D) Monopolistic competitors have large retained earnings that are available to finance R&D.

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Definitions:

Unified Field

A concept in physics that aims to describe all fundamental forces and the interactions between elementary particles in a single theoretical framework.

Psychology

The scientific study of the mind and behavior, encompassing aspects of conscious and unconscious experience as well as thought and emotion.

Single

The state of not being married or in a romantic relationship.

Freud

Freud, specifically Sigmund Freud, was an Austrian neurologist who founded psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.