According to the text, one argument in favor of concentration of market power is that
A) Market power increases incentives for innovation and invention.
B) Market power provides for greater investment in research and development.
C) The exercise of market power provides a more desirable mix of output.
D) Large firms can sometimes produce more efficiently than small firms because of economies of scale in production.

Question

Quizplus · Accepted Answer

The text states that large firms can sometimes produce more efficiently than small firms because of economies of scale in production.

According to the Text, One Argument in Favor of Concentration