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:

Best Case Scenario

The most favorable or desirable outcome possible in a situation, often used in planning or forecasting.

Storeowner

is an individual who owns and possibly operates a retail establishment, responsible for the management, decision making, and financial outcomes of the store.

Profitable to Develop

Refers to projects or initiatives that are expected to yield a financial gain upon development or implementation.

Complicated Technology

Advanced and often sophisticated technology that may be difficult to understand or operate.