The argument that concentration of market power enhances research and development

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efforts may be weak? 10. The argument that concentration of market power enhances research and development efforts may be weak because:
Answer
Question 10 answers
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.
 
B. A monopoly may have no clear incentive to pursue new research and development.

A monopoly is concerned with profit maximization, as any firm is. But a firm with competition (not counting one in an industry with homogeneous products) has an incentive for research and development: to try to get ahead of the competition. A monopolist has no such incentive.
 
B. A monopoly may have no clear incentive to pursue new research and development.

A monopoly is concerned with profit maximization, as any firm is. But a firm with competition (not counting one in an industry with homogeneous products) has an incentive for research and development: to try to get ahead of the competition. A monopolist has no such incentive.
 
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