Which of the following is an accurate argument in support of market power?
A)It restricts output and raises prices,contributing to more efficient use of resources.
B)It contributes to efficient production when there are diseconomies of scale.
C)It provides the economic profit necessary for survival and efficient production in a market.
D)It provides greater ability to fund research and development.

Question

Quizplus · Accepted Answer

Market power allows firms to earn higher profits, which can be reinvested into research and development, fostering innovation and potentially benefiting consumers with new and improved products.

Which of the Following Is an Accurate Argument in Support