Multiple Choice
According to Schumpeter,the large profits often realized from innovation tend to be transitory because
A) interest rates rise, causing the value of the innovator's assets to fall.
B) the state taxes away most of these excess earnings.
C) innovators sell their businesses by going public, and stock prices are very unpredictable and unstable.
D) rival firms are induced to copy the innovations, and thus entry of new firms drives down profits.
E) they result from contrived scarcities resulting from the use of monopoly power.
Correct Answer:
Verified
Correct Answer:
Verified
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