Asked by kiona brown on May 09, 2024
Verified
Those who contend that oligopolists are less likely than more competitive firms to engage in R&D say that:
A) oligopolists have little incentive to introduce costly new technology and produce new products when they currently are earning large economic profit using existing technology and selling existing products.
B) the undistributed profits of oligopolists give them a source of readily available,relatively low-cost funds for financing R&D.
C) entry barriers enable oligopolists to sustain the profits they gain from innovation.
D) the large size of oligopolists' R&D departments allows them to use very specialized,expensive R&D equipment and employ teams of specialized researchers.
Oligopolists
Firms or entities that operate in an oligopoly, a market structure characterized by a small number of sellers that dominate the market.
R&D
Stands for Research and Development, which refers to investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, representing the actual profitability of a company beyond just its accounting profits.
- Acquire an understanding of the factors prompting entities in a range of market architectures to engage in research and development (R&D) operations.
- Assess the effect of different market conditions on companies' readiness and power to allocate resources to Research and Development.
Verified Answer
Learning Objectives
- Acquire an understanding of the factors prompting entities in a range of market architectures to engage in research and development (R&D) operations.
- Assess the effect of different market conditions on companies' readiness and power to allocate resources to Research and Development.
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