Industrial concentration:
A)guarantees the continual introduction of technological innovation
B)promotes competition
C)sometimes limits innovation due to lack of competition
D)creates benefits to the consumer unmatched by other market structures
E)is uncommon in the Canadian economy

Question

Quizplus · Accepted Answer

Industrial concentration can limit innovation due to the lack of competition. When there are only a few dominant firms in a market, they may have little incentive to innovate and improve their products or services if they do not face strong competition. This can lead to higher prices, lower quality, and less innovation than would occur in a more competitive market.

Industrial Concentration