The harmful effects of oligopoly include all of the following except:
A) economies of scale result in a small number of large firms that spend more on research and development.
B) price is greater than long-run marginal and average cost.
C) production does not generally take place at the lowest point on the long-run average cost curve.
D) All of the above are harmful effects of oligopoly.

Question

Quizplus · Accepted Answer

Economies of scale leading to increased spending on research and development is generally considered a beneficial effect, not a harmful one.

The Harmful Effects of Oligopoly Include All of the Following