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.

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Definitions:

Deductive Reasoning

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Inductive Reasoning

The process of making generalized conclusions based on specific observations or instances.

Scientific Method

A systematic approach to research and experimentation used to explore observations and answer questions.

Occipital Cortex

The region of the brain located in the occipital lobe that is primarily responsible for processing visual information.