Innovations that lower production costs or create new products

A) are rare in competitive industries.
B) discourage new firms from entering the industry.
C) often generate short-run economic profits that do not last into the long run.
D) usually generate long-run economic profits for the innovator.

Innovations can indeed lead to short-run economic profits as they may provide a competitive advantage or meet new market needs. However, these profits often attract competition, which can erode these profits over time, making it difficult to sustain long-run economic profits solely based on the initial innovation.