“Monopolists are not technologically competitive.” Explain
What will be an ideal response?
Although a monopolist’s economic profit provides ample means to finance research and development, it has little incentive to implement new techniques (or products). The absence of competitors means there is no external pressure for technological advance in a monopolized market. Monopolists can afford to be inefficient and lethargic with no penalty. One argument is that research and technological advance may be one of the monopolist’s barriers to entry and, therefore, it must continue to seek technological advance to avoid falling prey to new rivals to maintain its monopoly power.
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Labor contracts often fix wages for more than one year
a. True b. False Indicate whether the statement is true or false
The term opportunity cost refers to the
A. value of what is gained when a choice is made. B. difference between the value of what is gained and the value of what is forgone when a choice is made. C. value of what is forgone when a choice is made. D. direct costs involved in making a choice.
Lucy is a young entrepreneur who sells lemonade from her lemonade stand in her driveway on Saturday afternoons. During the first hour, Lucy sells 30 glasses of lemonade and incurs an average variable cost of $0.20. Lucy's _________ for the first hour are __________
Fill in the blank(s) with the appropriate word(s).
If the error term is correlated with any of the independent variables, the OLS estimators are:
A. biased and consistent. B. unbiased and inconsistent. C. biased and inconsistent. D. unbiased and consistent.