Final answer:
Market competition provides a strong financial incentive for technological innovation as it allows firms to gain a competitive advantage, earn higher profits, and temporarily monopolize the market. The correct option is B. Market receptiveness
Step-by-step explanation:
Market competition can provide a strong financial incentive for 'pulling off' a technological innovation. When a firm successfully develops and implements a new technology, it can gain a competitive advantage over its rivals. This advantage allows the firm to earn higher profits by producing products more efficiently or creating products that better meet consumer demand.
For example, if a company develops a new smartphone with innovative features that no other competitor has, it can attract more customers and potentially charge a higher price for its product. This can result in increased profits and market share for the firm.
In addition, being the first to introduce a new technology often gives a firm a temporary monopoly, allowing it to earn above-normal profits before competitors catch up. This financial incentive encourages firms to invest in research and development to discover and implement new technologies. The correct option is B. Market receptiveness