Which of the Following Supports the Contention That Pure Competitors

question 227

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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Definitions:

Social Problem

An issue that affects a significant number of people within a society, recognized as harmful and in need of solution.

Hot And Cool Media

Terms introduced by Marshall McLuhan to describe media's effects on society, where "hot" media require less audience interaction, and "cool" media require more.

Mass Media

Forms of communication, such as newspapers, radio, and television, that reach a large audience.

Social Interaction

The dynamic, reciprocal exchange of actions and reactions among individuals and between individuals and their environment, which forms the basis of social relationships.