Which of the Following Is True of Monopolies and Their

question 67

Multiple Choice

Which of the following is true of monopolies and their incentive to innovate?

• A)Monopolies have the incentive to suppress innovation in order to sustain abnormal profits.
• B)Monopolies do not have the incentive to innovate,even in the short run,unless they receive patents for their invention.
• C)Monopolies do not have the incentive to innovate because they will continue to earn zero economic profits even with innovation.
• D)Monopoly firms have the incentive to innovate and introduce new products in order to expand their profit.

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Definitions:

Network Theories

Explain the frameworks and principles that describe how networks form, operate, and evolve. These include social, informational, and biological networks.

Reconstruct Information

The process of piecing together fragmented data or knowledge to form a coherent understanding.

Encoding

The process of converting information into a form that can be stored in memory.

Storage

The act or process of keeping data, objects, or materials in a location for future use, preservation, or retrieval.