According to the text,a convincing argument against concentration of market power is that
A)Market power increases incentives for innovation and invention.
B)Market power results in lower barriers to entry.
C)The exercise of market power results in a higher price.
D)Large firms can produce more efficiently than small firms because of diminishing returns in production.

Question

Quizplus · Accepted Answer

Concentration of market power can result in a higher price for consumers, as firms with market power have the ability to raise prices without fear of losing customers to competitors. This can result in reduced consumer welfare and inequality.

According to the Text,a Convincing Argument Against Concentration of Market