Modern theories of economic growth emphasize that monopolies:

Question

Quizplus · Accepted Answer

Modern theories of economic growth suggest that monopolies may be necessary for economic growth in certain cases. This is because monopolies can lead to economies of scale, innovation, and investment, which can ultimately improve productivity and economic growth. However, it is important to regulate and monitor monopolies to prevent abuse of market power and ensure continued competition. Option A is incorrect because monopolies can sometimes lead to deadweight loss, but their impact on economic growth is more complex. Option B is incorrect because monopolies can also exist in less-developed countries and lead to negative outcomes. Option D is incorrect because monopolies can arise from different market conditions, such as natural barriers to entry or strategic behavior by firms.

Modern Theories of Economic Growth Emphasize That Monopolies