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 are a return for an innovation.
B. This firm must not be in a competitive market if it was able to earn a profit.
C. The profits this firm earns aren't deserved, as the firm did not take any risks.
D. The firm must be a monopoly.
Answer: A
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