Which two market structures have a strong need to innovate but have low expected returns on R&D expenditures?
A)monopoly and oligopoly
B)oligopoly and pure competition
C)monopoly and monopolistic competition
D)monopolistic competition and pure competition

Question

Quizplus · Accepted Answer

Monopolistic competition and pure competition both have many firms, leading to intense competition and low expected returns on R&D, but they still need to innovate to differentiate products and maintain market share.

Which Two Market Structures Have a Strong Need to Innovate