A Virtuous Cycle Occurs

question 127

Multiple Choice

A virtuous cycle occurs

• A)when lobbyists petition members of Congress to grant a public franchise; the lobbyist then raise money for those Congress members who granted the franchise.
• B)when monopoly profits are used to create new products for additional monopoly profits.
• C)when a firm can attract enough buyers initially to increase a product's usefulness and attract even more buyers.
• D)when a firm's sales volume reaches a level where the firm can take advantage of economies of scale; thereby reducing the price of the product to further boost its sales.