Schumpeter's model argues that the successful innovative entrepreneur's reward is

Question

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Schumpeter's model argues that successful innovative entrepreneurs can earn a monopoly profit due to their ability to introduce new goods or processes that disrupt the existing market and create a temporary monopoly. While their profit may be eroded over time by competitors, in the short run the entrepreneur can earn above-normal profits. Thus, the correct answer is (C) a monopoly profit.

Schumpeter's Model Argues That the Successful Innovative Entrepreneur's Reward Is