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:

Egotism

A personality trait characterized by an excessive preoccupation with oneself and one's own importance, often disregarding others.

Initiative Versus Guilt

A stage in Erik Erikson's theory of psychosocial development where children learn to assert power and control through directed play and other activities.

Erik Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, identifying eight stages that span from infancy to adulthood.

Test Themselves

Engaging in self-assessment to gauge one's knowledge, skills, or abilities, often as a method of learning or preparation.