The argument that concentration of market power enhances research and development efforts may be weak because
A)Monopolies cannot afford basic research.
B)A monopoly may have no clear incentive to pursue new research and development.
C)No one has attempted to gather any empirical evidence.
D)No existing monopoly has a research and development program.

Question

Quizplus · Accepted Answer

A monopoly may have no clear incentive to pursue new research and development, as there is no competition to drive innovation and improve products. Therefore, it is not a strong argument to claim that concentration of market power enhances research and development efforts.

The Argument That Concentration of Market Power Enhances Research and Development