Some economists believe that the economy benefits from firms having market power. Which of the following is an argument that has been made to support this position?
A) Large firms are better able than small firms to spend funds on research and development required to develop new products.
B) Research has shown that the deadweight loss from monopolies is a small percentage of the value of production in the United States.
C) Competition is very rare in the U.S. economy and few new products are produced by smaller, competitive firms.
D) Large firms can afford to lobby the U.S. government in order to impose restrictions on imports and reduce the outsourcing of jobs to other countries.
A
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In accordance with the law of supply, both individual and market supply curves are drawn:
a. horizontal. b. vertical. c. downward-sloping. d. upward-sloping.
Federal and state governments often seek to raise tax revenue by levying excise or sales taxes on specific products. What economic factors should be considered in determining the products that will raise the most tax revenue? Give examples of products
in your answer. Please provide the best answer for the statement.