Entrepreneurs in Purely Competitive Industries

question 25

Multiple Choice

Entrepreneurs in purely competitive industries

• A) have no incentive to innovate because in the long run they will earn no economic profits.
• B) innovate to lower operating costs and generate short-run economic profits.
• C) utilize pricing strategies to generate short-run economic profits.
• D) rarely try to innovate because of a lack of financial resources.

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Definitions:

Simplify

The process of altering an expression to make it easier to understand or solve by combining like terms or using properties of operations.

Complex Fraction

A fraction where the numerator, the denominator, or both contain a fraction.

Simplify

The process of making an equation, expression, or problem easier to handle by reducing its complexity while maintaining its equivalence.

Complex Fraction

A fraction where the numerator, denominator, or both contain a fraction.