When Competition Is Present and Private Ownership Rights Are Clearly

Multiple Choice

When competition is present and private ownership rights are clearly defined and securely enforced by the legal system, business firms will have a strong incentive to

A) innovate and develop better products and lower cost production methods.
B) spend time attempting to plunder (take) the resources of others.
C) engage in wasteful activities that increase the cost of producing goods and services.
D) use resources during the current period rather than conserving them for the future.