Entrepreneurs in purely competitive industries
A)have no incentive to innovate because in the long run they will earn no economic profits.
B)innovate to lower operating costs and generate short-run economic profits.
C)utilize pricing strategies to generate short-run economic profits.
D)rarely try to innovate because of a lack of financial resources.

Question

Quizplus · Accepted Answer

Entrepreneurs in purely competitive industries innovate to lower operating costs, which can lead to short-run economic profits before competitors catch up and eliminate these profits.

Entrepreneurs in Purely Competitive Industries