Schumpeter hypothesized that monopolies
A) do not maximize profits
B) advertise extensively to keep out new entrants
C) may charge a lower price than the price generated in a perfectly competitive market
D) usually experience constant returns to scale
E) have higher costs than smaller firms

Question

Quizplus · Accepted Answer

Schumpeter argued that monopolies might charge lower prices than in a perfectly competitive market due to economies of scale and the ability to invest in research and development, leading to more efficient production methods or innovative products.

Schumpeter Hypothesized That Monopolies