Firms Have Tried a Number of Different Strategies to Reduce

question 16

Multiple Choice

Firms have tried a number of different strategies to reduce the negative effects of competition on their ability to earn economic profits.Which of the following strategies is most desirable from the viewpoint of economic efficiency and consumer well being?

• A)Collusion.
• B)Price leadership.
• C)Formation of cartels.
• D)Investment in research and development.

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Definitions:

Social Inequality

The existence of unequal opportunities or rewards for different social positions or statuses within a society.

Privilege

Privilege is the advantage that individuals or groups have over others, often unconsciously, due to societal norms, beliefs, and structures that favor them.

Disjuncture

A separation or lack of alignment between components or ideas.

Structural Functionalism

A sociological theory that views society as a complex system whose parts work together to promote solidarity and stability.