Which of the Following Supports the Contention That Pure Competitors

question 229

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 profit and drive them out of the market.
• 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:

Pounds

A unit of weight in the imperial system, equivalent to 0.453592 kilograms.

Cerebral Cortex

The outer layer of the brain, responsible for complex cognitive processes, including reasoning, language, and consciousness.

Central Nervous System

The central nervous system consists of the brain and spinal cord and is responsible for processing and transmitting neural signals in the body.

Brainstem

The lower extension of the brain, connecting to the spinal cord, responsible for controlling vital life functions such as breathing, heart rate, and blood pressure.