The presence of barriers to entry in innovation will ensure that profits from innovation are driven to zero.

Question

Quizplus · Accepted Answer

The presence of barriers to entry in innovation can actually result in higher profits for innovators who are able to overcome those barriers and establish a dominant position in the market. This is because the barriers make it difficult for competitors to enter the market and compete effectively, giving the innovator more power to set prices and control the market. However, over time, competition and further innovation may erode these profits.

The Presence of Barriers to Entry in Innovation Will Ensure