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:

Just-World Phenomenon

The tendency for people to believe the world is just and that people therefore get what they deserve and deserve what they get.

Mirror-Image Perceptions

Mutual views often held by conflicting people, as when each side sees itself as ethical and peaceful and views the other side as evil and aggressive.

Deindividuation

A psychological state characterized by a loss of self-awareness and individual accountability, often occurring in group settings.

Self-Awareness

The consciousness of one's own character, feelings, motives, and desires, which is essential for personal development and emotional intelligence.