Which of the Following Supports the Contention That Pure Competitors

question 55

Multiple Choice

Which of the following supports the contention that pure competitors have a strong incentive to engage in R&D?

• A)Entry to purely competitive industries is easy, and thus profit from innovation is quickly competed away.
• B)Pure competitors cannot risk being complacent about innovation because a new product, production technique, or distribution method could undermine their normal
• C)Most purely competitive industries are increasing-cost industries.
• D)Pure competitors are happy to earn only a normal profit.

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Definitions:

Self-control

Self-control is the ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Equity Theory

An assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange.

Expectancy Theory

The assumption that motivation depends not only on how much a person wants something but also on how likely he or she is to get it.