Question 1

Process innovation refers to:

Accepted Answer

A)   development of new products.
B)   implementation of better methods of producing products.
C)   first discovery of new scientific principles.
D)   widespread imitation of innovations.E) B) and C)
F) A) and D)

Question 2

Suppose a firm anticipates that a particular R&D expenditure of $100 million will result in a new product and thus create a one-time added profit of $108 million a year later.The firm will:

Accepted Answer

A)   undertake the R&D expenditure if its interest-rate cost of borrowing is 12 percent.
B)   undertake the R&D expenditure if its interest-rate cost of borrowing is 10 percent.
C)   not undertake the R&D expenditure if its interest-rate cost of borrowing is 9 percent.
D)   not undertake the R&D expenditure if its interest-rate cost of borrowing is 7 percent.E) All of the above
F) C) and D)

Question 3

Technological advance is a three-step process involving:

Accepted Answer

A)   invention,duplication,and diffusion.
B)   duplication,innovation,and diversity.
C)   invention,innovation,and diffusion.
D)   necessity,invention,and solution.E) A) and B)
F) A) and C)

Question 4

Technological advance improves productive efficiency by:

Accepted Answer

A)   lowering average total cost.
B)   increasing marginal utility.
C)   enhancing monopoly power.
D)   giving society a more-preferred mix of goods and services.E) A) and B)
F) A) and C)

Question 5

As pizza topped with barbecue chicken became popular at specialty restaurants,Pizza Hut introduced a similar pizza.This imitation illustrates:

Accepted Answer

A)   innovation.
B)   invention.
C)   creative destruction.
D)   diffusion.E) A) and D)
F) A) and C)

Question 6

Other things equal,patents:

Accepted Answer

A)   decrease the expected rate of return on an R&D expenditure.
B)   increase the expected rate of return on an R&D expenditure.
C)   increase the interest-rate cost of funds used to finance an R&D expenditure.
D)   decrease the interest-rate cost of funds used to finance an R&D expenditure.E) None of the above
F) B) and C)

Exam 14: Technology RD and Efficiency

Process innovation refers to:

Correct Answer
verified

Technological advance is a three-step process involving:

Correct Answer
verified

As pizza topped with barbecue chicken became popular at specialty restaurants,Pizza Hut introduced a similar pizza.This imitation illustrates:

Correct Answer
verified

Other things equal,patents:

Correct Answer
verified

Technological advance improves productive efficiency by:

Correct Answer
verified

Suppose a firm anticipates that a particular R&D expenditure of $100 million will result in a new product and thus create a one-time added profit of $108 million a year later.The firm will:

Correct Answer
verified

Exam 14: Technology RD and Efficiency

Process innovation refers to:

Correct AnswerverifiedShow Answer

Technological advance is a three-step process involving:

Correct AnswerverifiedShow Answer

As pizza topped with barbecue chicken became popular at specialty restaurants,Pizza Hut introduced a similar pizza.This imitation illustrates:

Correct AnswerverifiedShow Answer

Other things equal,patents:

Correct AnswerverifiedShow Answer

Technological advance improves productive efficiency by:

Correct AnswerverifiedShow Answer

Suppose a firm anticipates that a particular R&D expenditure of $100 million will result in a new product and thus create a one-time added profit of $108 million a year later.The firm will:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified