If Monopoly Power Is NOT Protected by Government

question 56

Multiple Choice

If monopoly power is NOT protected by government

• A)firms must develop and implement new technologies to increase productivity.
• B)other barriers to technology adoption will emerge.
• C)firms must lobby for protection.
• D)a country's standard of living will decline.
• E)firms have no incentive to innovate and increase productivity.

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Definitions:

Monopsony

Monopsony is a market condition where there is only one buyer for a product or service, giving the buyer substantial control over the market and the terms of purchase.

J.P Stevens

An American textile manufacturer once prominent but now absorbed through various mergers; also known for landmark labor disputes.

ToyotA

A multinational automaker headquartered in Japan, known for its innovative production methods and a wide range of vehicles.

Hospitable

Characterized by or showing kindness and warmth to guests or strangers.