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:

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, values, or ideas.

Integration

The process of combining or coordinating separate elements or substances to create a unified whole, often used in reference to social and psychological processes.

Minority Person

An individual belonging to a segment of a population that differs from the majority in cultural, national, racial, religious, linguistic, or sexual characteristics.

Dominant Culture

The culture of the most powerful, widespread, or influential group within a society that sets norms and standards.