Which pair of market structures provides firms with the greatest ability to finance R&D out of retained earnings?
A) Oligopolists and pure monopolists.
B) Pure competitors and pure monopolists.
C) Pure competitors and monopolistic competitors.
D) Monopolistic competitors and pure monopolists.

Question

Quizplus · Accepted Answer

Oligopolists and pure monopolists typically have higher profits due to less competition, allowing them to retain more earnings that can be invested in research and development (R&D).

Which Pair of Market Structures Provides Firms with the Greatest