Which one of the following statements about the competitive market system is correct?

AThe competitive market system discourages innovation because firms want to get all the profits possible from existing machinery and equipment.

BThe competitive market system encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques.

CThe competitive market system discourages innovation because it's difficult to acquire additional capital in the form of new machinery and equipment.

DThe competitive market system encourages innovation because successful innovators are rewarded with economic profits.