QQuestionEconomics
QuestionEconomics
Which phrase best completes the table?
| Monopoly | |
| --- | --- |
| Benefits | Drawbacks |
| Has lower production costs | Allows for little competition between
businesses |
| | May lead to price-fixing |
A. Makes a greater variety of products available to consumers B. Has more money for research and development C. Promotes innovation and entrepreneurship D. Is less likely to be regulated by the government
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Answer
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Step 1:Let me solve this step by step:
Step 2:: Analyze the context
The table is discussing the characteristics of a monopoly, listing its benefits and potential drawbacks. We need to find a phrase that best completes the table and matches the existing entries.
Step 3:: Examine the existing entries
Benefits: - Has lower production costs Drawbacks: - Allows for little competition between businesses - May lead to price-fixing
Step 4:: Evaluate the answer choices
A. Makes a greater variety of products available to consumers B. Has more money for research and development C. Promotes innovation and entrepreneurship D. Is less likely to be regulated by the government
Step 5:: Analyze each option
Option A: This is unlikely. Monopolies typically reduce product variety due to lack of competition. Option B: While monopolies might have more financial resources, this doesn't necessarily translate to more research and development. Option C: Monopolies actually discourage innovation because they face little competitive pressure. Option D: This is incorrect. Monopolies are MORE likely to be regulated by the government, not less.
Step 6:: Determine the best answer
The phrase that best completes the table and matches the existing characteristics is Option B: "Has more money for research and development"
Final Answer
Has more money for research and development The reasoning is that monopolies, by controlling an entire market, can generate significant profits that could potentially be redirected into research and development efforts.
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