The example of Governor Perry openly courting companies in other states to move to Texas illustrates

a. that states only engage in competition when they are desperate for investment.
b. only large states with resources can engage in these kinds of activities.
c. all states might be better off if no state offered tax incentives, but once one state does it, the rest feel compelled to respond.
d. that such policies are almost always political and economic failures.

c. all states might be better off if no state offered tax incentives, but once one state does it, the rest feel compelled to respond.