Which of the Following Supports the Contention That Pure Competitors

question 37

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:

Forge's Indorsement

Fabricating or illegally replicating someone's endorsement or signature, often with fraudulent intent. This key-term seems incorrect; assuming it refers to "Forged Endorsement."

Recover

To obtain restitution or compensation for loss or injury through legal proceedings.

Pays The Check

The act of making payment by writing and signing a check that is then converted into a specific amount of money and transferred to the indicated payee.

Substitute Check

A digital reproduction of an original check that legally substitutes for the original paper version for processing.