The reason that innovation promotes competition is because
A)innovative firms can charge any price they want for a new product.
B)it lowers the research and development costs for innovative firms.
C)firms use it to make competitors' products obsolete in the market.
D)government provides patent protection for innovation that lasts for a long time.

Question

Quizplus · Accepted Answer

Innovation allows firms to develop new or improved products that can outperform existing ones in the market, making competitors' offerings less attractive or obsolete. This dynamic encourages competition as firms strive to innovate to gain or maintain market share.

The Reason That Innovation Promotes Competition Is Because