Describe the legal protections and potential advantages of taking the lead in innovation
What will be an ideal response?
Taking the lead in innovation has several protections and potential advantages for the firm. (1) Patents limit imitation and protect profits over time. (2) Copyrights and trademarks reduce direct copying and increase the incentive for product innovation. (3) Brand names may provide a major marketing asset. (4) Trade secrets and learning-by-doing give firms an advantage. (5) The time lags between innovation and diffusion give innovators time to make substantial economic profits. (6) There is the potential purchase of the innovating firm by a larger firm at a high price.
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In the money market, a condition of excess demand for money can be eliminated by a ________ in aggregate output or a ________ in the interest rate, everything else held constant
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
The higher the world price above the domestic no-trade equilibrium, the lesser the quantity of a good exported by a country
a. True b. False Indicate whether the statement is true or false
Specialization is not affected by the geography of an area
a. True b. False Indicate whether the statement is true or false
Deciding if a company will produce automobiles by robotics or manual labor answers the economic question of:
A. "Who consumes the products produced?" B. "What products will be produced?" C. "Where will the products be consumed?" D. "How will the products be produced?"