What is the term used for the process by which an entrepreneur creates or recognizes a new and better product, acquires it, and brings it to market, making older substitutes obsolete?
a. creative destruction
b. innovation
c. the substitution effect
d. backward-bending innovation
a
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Explain why economists consider it to be one of the economic functions of government to provide a legal system
What will be an ideal response?
A perfectly competitive firm has a horizontal demand curve because it can sell as much as it wants at the market price.
Answer the following statement true (T) or false (F)
An increase in demand is reflected as a rightward (outward) shift of the demand curve and is caused by an increase in price
a. True b. False Indicate whether the statement is true or false
Diminishing marginal returns occurs:
A. only in the short run. B. both in the short run and the long run. C. only in the long run. D. only in time periods that are neither long run nor short run.