Which of the Following Is an Argument in Support of Monopolies

question 18

Multiple Choice

Which of the following is an argument in support of monopolies?

• A) They increase output and raise prices,contributing to greater consumption of scarce resources.
• B) They are protected from competition so they have greater ability to pursue research and development.
• C) They contribute to efficient production when there are diseconomies of scale.
• D) They provide the economic profit necessary for survival and efficient production in a market.

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Definitions:

Confidence Intervals

Ranges within which a population parameter is estimated to lie, with a certain level of confidence.

Population Mean

The average of a set of characteristics, measurements, or counts in the entire population being studied.

SRS

Simple Random Sampling, a fundamental sampling technique where each member of the population has an equal chance of being selected.

Margin Error

The highest degree to which the outcomes from a sample are anticipated to vary from the actual value of the population.