Invention cannot be successful financially if price is
A. greater than marginal cost because invention is based largely on social costs.
B. greater than marginal cost because invention is based solely on external costs.
C. equal to marginal cost because invention is based largely on variable costs.
D. equal to marginal cost because invention is based largely on fixed costs.
Answer: D
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Deficient information on unsafe products can cause:
a. overconsumption of a product. b. waste of resources used to produce a product. c. consumers to pay a higher price for a product. d. all of the above answers are true. e. none of the above answers a. - c. are true.
Although economic science can contribute theoretical and factual knowledge on a particular issue, the final decision on policy questions often depends on:
a. information that is not currently available b. social values c. ethical considerations d. all of these
The more money firms spend on R&D the faster the economy is expected to grow
a. True b. False Indicate whether the statement is true or false
Reaching an efficient bargain is difficult when the
a. externality is large. b. number of interested parties is large. c. externality is negative. d. government becomes involved.