Government policy toward cartels and oligopolies typically leads to all of the following, EXCEPT:

Question

Quizplus · Accepted Answer

Government policy toward cartels and oligopolies typically leads to higher prices, lower quality, and lower output as these firms are able to restrict competition and maintain their market power. However, the presence of government regulations and oversight may incentivize more innovation as these firms strive to stay ahead of the regulatory curve. Therefore, the exception is more innovation (Option B).

Government Policy Toward Cartels and Oligopolies Typically Leads to All