Why do firms spend money on costly innovation?
A. Competitive markets leave firms no choice but to innovate.
B. Innovation is a low-risk activity.
C. Innovation always results in higher profits for firms.
D. Innovation is usually profitable because the majority of innovations reach the market place.
E. Because innovation is beneficial for society and firms are motivated to act in ways that are beneficial for society.
Answer: A
You might also like to view...
Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000
Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries? A) The growth rate of real GDP per capita in Alpha and Beta will be the same. B) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries. C) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. D) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta.
Corrected for inflation, the real GDP was only about _____ times greater in 2014 than in 1959
a. 3.1 b. 5.3 c. 6.7 d. 11.2
A government program that pays farmers not to plant corn on part of their land can help farmers not only through the subsidy payments to farmers who participate in the program but also by raising the market price of corn
a. True b. False Indicate whether the statement is true or false
The labor force participation rate is the fraction of the population over 16 years of age that is looking for work.
Answer the following statement true (T) or false (F)