Which two market structures have a strong need to innovate but have low expected returns on R&D expenditures?
A) monopoly and oligopoly
B) oligopoly and pure competition
C) monopoly and monopolistic competition
D) monopolistic competition and pure competition

Question

Quizplus · Accepted Answer

Monopolistic competition and pure competition both have many firms, leading to a strong need to innovate to differentiate products, but the high level of competition results in low expected returns on R&D.

Which Two Market Structures Have a Strong Need to Innovate