Which of the Following Is an Argument in Favor of a Competitive

question 75

Multiple Choice

Which of the following is an argument in favor of a competitive market structure rather than monopoly?

• A) Monopolies have greater ability to pursue research and design.
• B) The lure of monopoly power provides a greater incentive for invention and innovation.
• C) Monopolies produce less at a higher price than competitive markets, ceteris paribus.
• D) Economies of scale allow a single firm to produce at lower cost than in a competitive market, ceteris paribus.

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Definitions:

Pituitary

A tiny gland at the base of the brain responsible for regulating vital bodily functions and general well-being through the secretion of hormones.

Master Gland

Informal term for the pituitary gland, due to its role in controlling several other hormone-secreting glands in the body.

Hirsutism

A condition characterized by excessive hair growth on the body or face, particularly in women, often due to hormonal imbalance.

Extremities

The outermost parts of the human body, including the hands, feet, arms, and legs.