The following can increase the profits of an innovating firm, except
A)new product introductions.
B)existing product improvements.
C)imitation of its innovation by other firms.
D)successful process innovations.

Question

Quizplus · Accepted Answer

Imitation of its innovation by other firms typically reduces a firm's profits by increasing competition and reducing the firm's market share and pricing power, contrary to new product introductions, existing product improvements, and successful process innovations, which can directly increase a firm's profits.

The Following Can Increase the Profits of an Innovating Firm