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:

Beer

An alcoholic beverage made from barley, hops, water, and yeast through a fermentation process.

Pints

A measure of volume often used for liquids, approximately equal to half a liter or 16 US fluid ounces.

Social Support

The assistance and comfort received from others, which can be emotional, informational, or tangible, contributing to an individual's coping mechanism.

Instrumental Aid

Assistance given to someone in the form of services or devices that support the completion of tasks or the achievement of goals.