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Vitek1552 [10]
3 years ago
8

The competitive market system:

Business
1 answer:
pav-90 [236]3 years ago
6 0

Answer:

B- Encourages innovation because successful innovators are rewarded with economic profits.

Explanation:

The competitive market system is largely encouraging as it keeps firms and companies on their toes, encouraging fresh ideas and work plans, aimed at getting ahead of other competitors in the market.

When these competitive strategies birth successful innovations, economic profits are made by the innovators as there is an<em> increased customer base, increased effectiveness and increased customer satisfaction</em> by meeting needs through fresh ideas. This creates a <em>consequential rice in profits which is the major target of every profit making organization.</em>

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