Is innovation within existing firms important? Explain and give examples
What will be an ideal response?
Many large businesses have research and development units that create new products and improve existing products. These firms have pay systems that reward workers with a bonus or share of the profits from the innovation in addition to a salary. These corporations are often responsible for major innovations and improvements in a variety of consumer products such as televisions, telephones, home appliances, and automobiles. An example is the 3M Corporation, which developed Post-It Notes and Th insulate insulation. Also, businesses have spun off their research and development units to create new firms. Some examples include Lu cent Technologies, a firm formed by ATT & T, and Intimation, a firm formed by 3M.
You might also like to view...
Suppose the upward sloping labor supply curve shifts leftward in a labor market with a single employer (monopsony). What happens to the marginal expenditure curve?
A) Shifts left B) Shifts right C) Remains the same D) We do not have enough information to answer this question.
If merchandise imports are greater than merchandise exports, the nation is experiencing a
a. negative balance on current account b. merchandise trade deficit c. capital account imbalance d. favorable balance of trade e. growth in foreign reserves
The profit maximizing rule P = MC applies to:
A. both perfectly competitive firms and imperfectly competitive firms. B. all firms. C. perfectly competitive firms only. D. monopolists only.
The debate over the causes of recessions in the U.S. in recent years has included arguments about:
A. both monetary policy and higher oil prices. B. higher oil prices, but not monetary policy. C. decreases in exports. D. monetary policy, but not higher oil prices.