Which of the following is (are) true when one firm's research and production can increase another firm's access to technological advances?
a. It is called a technology spillover
b. Other firms will imitate and improve on the new knowledge.
c. If there is no subsidy, the market equilibrium output level is less than the efficient equilibrium output level.
d. All of the above.
d
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The above figure shows Bob's utility function. He currently has $50 and is considering an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. Bob will make the investment
A) if it costs less than $50. B) if it costs less than $30. C) if it is a fair game. D) under no circumstances.
A factory in a centrally planned economy produces 1,000 left shoes and no right shoes. No corresponding factory produces only right shoes. This outcome is an example of inefficiency in
A. output selection. B. production planning. C. product distribution. D. market segmentation.
For which of the following medical goods or services is the income elasticity of demand largest?
a. emergency services after a car accident b. measles shots c. physical examinations for life insurance applications d. medical tests to diagnose specific symptoms e. face-lifts
A shift in the demand curve for sailboats resulting from an increase in incomes will lead to
a. higher prices of sailboats. b. lower prices of sailboats. c. a corresponding shift in the supply curve for sailboats. d. lower output of sailboats. e. no change in the price of sailboats.