Which pair of market structures provides firms with the greatest ability to finance R&D out of retained earnings?
A) oligopolists and pure monopolists
B) pure competitors and pure monopolists
C) pure competitors and monopolistic competitors
D) monopolistic competitors and pure monopolists

Question

Quizplus · Accepted Answer

Oligopolists and pure monopolists have the greatest ability to finance R&D out of retained earnings because they have the market power to set prices above marginal cost and earn economic profits.

Which Pair of Market Structures Provides Firms with the Greatest