When Companies in a Market-Directed Economy Try to Find "Little

question 149

Multiple Choice

When companies in a market-directed economy try to find "little monopolies" for themselves,

• A) success is likely to attract more competitors-and squeezing of the innovators' profits.
• B) they will fail.
• C) this reduces innovation, new investment, and economic growth.
• D) the allocation of resources will be the same as in a purely competitive economy.
• E) this forces consumers to buy new-possibly more expensive-products that they do not want.

---

Definitions:

Random Sample

A subset of individuals chosen from a larger set where each individual has an equal chance of being selected.

Large-Sample Z

A statistical test used to determine if two population means are different, applicable when the sample size is large.

Null Hypothesis

A hypothesis that suggests no significant difference or effect, proposed to be tested against an alternative hypothesis.

Random Sample

A subset of individuals chosen from a larger population, where each individual has an equal chance of being selected, used to infer population characteristics.