The optimal market structure for technological advance seems to be an industry in which
A)most firms are purely competitive.
B)there is a natural monopoly with a large market for the product.
C)there are oligopolistic firms and several small and highly innovative firms.
D)the government provides some funding for research and development.

Question

Quizplus · Accepted Answer

Oligopolistic firms have the resources to invest in research and development, while the presence of several small, highly innovative firms ensures a competitive environment that fosters innovation. This combination promotes technological advancement.

The Optimal Market Structure for Technological Advance Seems to Be