Monopolies may be the only firms large enough to commercially produce a significantly innovative new product.

Question

Quizplus · Accepted Answer

Monopolies have a significant advantage in terms of economies of scale and the ability to invest heavily in research and development. This can allow them to produce innovative new products that smaller firms cannot. Additionally, monopolies can also have the exclusive control over necessary resources or intellectual property, giving them a unique advantage in developing new products. However, it is still possible for smaller firms to innovate and disrupt established industries, so monopolies are not the only source of innovation.

Monopolies May Be the Only Firms Large Enough to Commercially