How can the pursuit of market power lead to the social good?
A) It always leads to the lowest prices for the customers.
B) It can lead to innovation.
C) It leads to less product differentiation.
D) It can lead to price discrimination.

Question

Quizplus · Accepted Answer

The pursuit of market power can lead to innovation because companies may invest in research and development in order to improve their products or processes and gain a competitive advantage. This can lead to the development of new technologies, products, and services that can benefit society as a whole. However, it is important to note that market power can also lead to negative effects, such as higher prices and reduced consumer choice, so government regulation may be necessary to ensure that companies do not harm consumers or engage in anti-competitive behavior.

How Can the Pursuit of Market Power Lead to the Social