According to the text,one argument in favor of concentration of market power is that
A)Market power always increases incentives for innovation and invention.
B)Market power results in higher prices and lower quantities.
C)The exercise of market power provides a more desirable mix of output.
D)Large firms can sometimes produce more efficiently than small firms because of economies of scale in production.

Question

Quizplus · Accepted Answer

The text mentions that concentration of market power can sometimes result in larger firms being able to produce more efficiently due to economies of scale in production. This is presented as an argument in favor of concentration of market power.

According to the Text,one Argument in Favor of Concentration of Market