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:

1950s

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