Profit-motivated product and process innovation is primarily a characteristic of ________ systems.
A)market
B)centrally planned
C)oligopolistic
D)socialist
E)monopolistic

Question

Quizplus · Accepted Answer

In a market system, firms are motivated by profit and competition to create new and improved products and processes that will attract customers and increase their profits. This drive for innovation is a key feature of market systems and is fueled by the profit motive. In contrast, centrally planned and socialist systems may have less emphasis on innovation as profits are not the primary driving force for firms. Oligopolistic and monopolistic systems may also have some innovation, but it may be limited by the concentration of power in a few firms.

Profit-Motivated Product and Process Innovation Is Primarily a Characteristic of ________