Based on the text, why is innovation an important factor in decision-making in a market economy? A It encourages consumers to buy more products, even if prices are higher. B. It encourages producers to improve their products to increase their profits. C. It encourages the government to lower corporate taxes to increase production. D. It encourages producers to limit the quantity of goods and services they produce.

Politics

Question
Based on the text, why is innovation an important factor in decision-making in a market
economy?
A It encourages consumers to buy more products, even if prices are
higher.
B. It encourages producers to improve their products to increase their
profits.
C. It encourages the government to lower corporate taxes to increase
production.
D. It encourages producers to limit the quantity of goods and services
they produce.
Answer

B. It encourages producers to improve their products to increase their profits.

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Innovation is an important factor in decision-making in a market economy because it encourages producers to improve their products in order to increase their profits...
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