Multiple Choice
Which of the following is true of monopolies and their incentive to innovate?
A) Monopolies have the incentive to suppress innovation in order to sustain abnormal profits.
B) Monopolies do not have the incentive to innovate,even in the short run,unless they receive patents for their invention.
C) Monopolies do not have the incentive to innovate because they will continue to earn zero economic profits even with innovation.
D) Monopoly firms have the incentive to innovate and introduce new products in order to expand their profit.
Correct Answer:

Verified
Correct Answer:
Verified
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