All of the following except one are reasons why competitive firms are obliged to be innovative.Which is the exception?
A)If they do not keep up with the latest methods,new firms will enter who are willing to use these methods.
B)Innovation implies higher profits for the firm in the short run.
C)Innovations will increase the costs of production which will induce firms to increase production.
D)Innovation usually encourages new entrants which will reduce the price in the long run,thus penalizing firms which do not innovate.

Question

Quizplus · Accepted Answer

Innovations may actually decrease the costs of production in the long run, making it unnecessary for firms to increase production simply because they have innovated.

All of the Following Except One Are Reasons Why Competitive