Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 11 - Pure Competition in the Long Run - Discussion Questions - Page 252: 6

Answer

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Work Step by Step

Some investments make sense to do even though they are very risky. After all, many companies will be willing to invest 100,000 dollars in a new technology that they are unsure will work. While the risk is high, they know that they can dominate their market if the idea works.
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