Market competition may sometimes encourage a firm to innovate out of fear because of the perception that
A. they will inevitably fall behind other competitors seeking out innovations.
B. the firm will only have a very temporary edge over its competitors.
C. the ability to earn above-normal profits is also available to its competition.
D. higher profits can only be earned by finding less expensive ways to produce.
Answer:A
Market competition may sometimes encourage a firm to innovate out of fear because of the perception that
A. they will inevitably fall behind other competitors seeking out innovations. B. the firm will only have a very temporary edge over its competitors. C. the ability to earn above-normal profits is also available to its competition. D. higher profits can only be earned by finding less expensive ways to produce.
Explanation: Type: Multiple Choice