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:

Entrepreneurial Abilities

The skills and qualities that enable an individual to identify opportunities, allocate resources, and create value or start a business.

Housing Discrimination

The illegal practice of denying an individual or group the opportunity to buy or rent housing based on race, gender, ethnicity, religion, or other protected status.

William Levitt

An American real-estate developer recognized for popularizing the concept of mass-produced suburbia with his development of Levittown.

Suburbanization

The process of population movement from within cities to the outskirts, creating residential and sometimes business developments.