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AP Microeconomics
Unit 3 – Production, Cost, and the Perfect Competition Model
Topic 3.7
Which of the following statements best explains the relationship between perfect competition and innovation?
Perfect competition and innovation are unrelated concepts.
Perfect competition discourages innovation due to low profit margins.
Perfect competition allows firms to achieve monopoly power through innovation.
Perfect competition stimulates innovation through competition between firms.
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AP Microeconomics - 3.7 Perfect Competition
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Innovation
Perfect Competition
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About Us
About Fiveable
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Terms of Use
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CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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