All of the Following Except One Are Reasons Why Competitive

question 12

Multiple Choice

All of the following except one are reasons why competitive firms are obliged to be innovative.Which is the exception?

• A)If they do not keep up with the latest methods,new firms will enter who are willing to use these methods.
• B)Innovation implies higher profits for the firm in the short run.
• C)Innovations will increase the costs of production which will induce firms to increase production.
• D)Innovation usually encourages new entrants which will reduce the price in the long run,thus penalizing firms which do not innovate.

---

Definitions:

Subjective Construction Rule

This legal principle involves interpreting contracts, statutes, or documents based on the personal understanding or intent of the parties involved, rather than an objective interpretation by outsiders.

Common Law Rules

Legal principles developed through court decisions over time, rather than through legislative enactments or executive branch action.

Offer Acceptance

The agreement by a party to the terms of an offer made by another, forming a binding contract.

U.S. Mail

The federal postal service operated by the United States, responsible for the collection, transport, and delivery of mail and packages nationwide and internationally.