Asked by Claire Layug on Jul 05, 2024
Verified
The competitive market system
A) encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques.
B) discourages innovation because it is difficult to acquire additional capital in the form of new machinery and equipment.
C) discourages innovation because firms want to get all the profits possible from existing machinery and equipment.
D) encourages innovation because successful innovators are rewarded with economic profits.
Competitive Market System
A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar, fostering competition.
Successful Innovators
Individuals or organizations that effectively introduce new ideas, goods, services, or processes, leading to market success.
Economic Profits
The gap between a business's complete earnings and all its expenses, covering both overt and hidden costs.
- Understand the mechanisms that encourage or discourage innovation in a competitive market system.
Verified Answer
Learning Objectives
- Understand the mechanisms that encourage or discourage innovation in a competitive market system.
Related questions
The Market System's Answer to the Fundamental Question How Will ...
Enterprise Managers and Workers in the Soviet Union Often Resisted ...
List and Describe the Characteristics of a Perfectly Competitive Market
A Key Characteristic of a Competitive Market Is That ...
For Any Competitive Market, the Supply Curve Is Closely Related ...