QuestionMay 27, 2025

Which of the following has not contributed to the development of oligopolies in the U.S. economy? Multiple Choice mergers patents economies of scale interindustry competition

Which of the following has not contributed to the development of oligopolies in the U.S. economy? Multiple Choice mergers patents economies of scale interindustry competition
Which of the following has not contributed to the development of oligopolies in the U.S. economy?
Multiple Choice
mergers
patents
economies of scale
interindustry competition

Solution
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Answer

interindustry competition Explanation 1. Identify characteristics of oligopolies Oligopolies often form due to mergers, patents, and economies of scale, which reduce competition and increase market control. 2. Analyze each option - **Mergers**: Combine companies, reducing competition. - **Patents**: Provide exclusive rights, limiting entry. - **Economies of scale**: Lower costs for large firms, creating barriers. - **Interindustry competition**: Involves competition between different industries, not contributing to oligopoly formation.

Explanation

1. Identify characteristics of oligopolies<br /> Oligopolies often form due to mergers, patents, and economies of scale, which reduce competition and increase market control.<br /><br />2. Analyze each option<br /> - **Mergers**: Combine companies, reducing competition.<br /> - **Patents**: Provide exclusive rights, limiting entry.<br /> - **Economies of scale**: Lower costs for large firms, creating barriers.<br /> - **Interindustry competition**: Involves competition between different industries, not contributing to oligopoly formation.
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