Which of the Following Supports the Contention That Pure Competitors

question 221

Multiple Choice

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

• A)Entry to purely competitive industries is easy, and thus profit from innovation is quickly competed away.
• B)In pure competition, products are already highly differentiated.
• C)Most purely competitive industries are increasing-cost industries.
• D)Pure competitors are happy to earn only a normal profit.

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Select

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