A virtuous cycle refers to the development of new products that follows when a monopoly earns economic profits.

Question

Quizplus · Accepted Answer

A virtuous cycle refers to a self-reinforcing cycle of positive feedback between different aspects of product development, such as innovation, investment, and market adoption. It is not directly tied to the economic profits of a monopoly. In fact, monopolies can potentially hinder innovation and competition, leading to a less dynamic and efficient market.

A Virtuous Cycle Refers to the Development of New Products