A software company writes a better operating system for personal computers and earns very large profits on this operating system. Which of the following is true?
A. The profits this firm earns aren't deserved, as the firm did not take any risks.
B. The firm must be a monopoly.
C. The profits this firm earns are a return for an innovation.
D. This firm must not be in a competitive market if it was able to earn a profit.
Answer: C
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