Which pair of market structures provides firms with the greatest ability to finance R&D out of retained earnings?
A. Oligopolists and pure monopolists.
B. Pure competitors and pure monopolists.
C. Pure competitors and monopolistic competitors.
D. Monopolistic competitors and pure monopolists.
Answer: A
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The monopolist always maximizes its profits by producing the amount of output that sets the marginal revenue equal to zero
Indicate whether the statement is true or false
An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant
A) increase; increase B) reduce; reduce C) increase; reduce D) reduce; increase
A main trading partner with the U.S. is:
A. South Africa. B. Mexico. C. Russia. D. Saudi Arabia.
When looking at this graph for the welfare effects of a subsidy, the cost to taxpayers ______.
a. prevents deadweight loss from the gains in consumer and producer surplus
b. is less than the gains in consumer and producer surplus
c. equals the gains in consumer and producer surplus
d. exceeds the gains in consumer and producer surplus