Exam 15: Technology, RD, and Efficiency

Refer to the data for a utility-maximizing consumer whose income = $4. Assume that new product Z doesn't exist. How many units of X and Y will this consumer buy, given his or her $4 budget?

In the 1800s, railroads broke up the monopoly position of wagons, ships, and barges as the major means of transporting goods. This would be an example of

An amount of R&D spending that is greater than the optimal amount indicates that the

Products that incorporate thousands of different technologies into a single product

For a new product to be profitable, it must

A patent on a new product benefits the firm securing it by

The marginal benefit to a firm from its R&D expenditures is depicted by its

Suppose a firm anticipates that a particular R&D expenditure of $20 million will result in a new product and thus create a one-time added profit of $22 million a year later. The firm will

Refer to the data. At $100 million of R&D expenditures, the

Technological advance improves allocative efficiency by

As it relates to R&D, the expected-rate-of-return curve, r,

The outcomes from R&D expenditures by firms are

Those who contend that oligopolists are less likely than more competitive firms to engage in R&D say that

The modern view of technological advance is that it is an external force to which the economy adjusts.

Approximately what percentage of research and development spending by businesses in the United States in 2016 went to development (innovation and imitation)and about what percentage went to basic and applied research and invention, respectively?

What does it mean that "innovators try to anticipate the future"? What are the economics consequences of this effort?

Describe the legal protections and potential advantages of taking the lead in innovation.

Product innovation will be successful only if it makes the product's

The legal protection that gives the original innovators of products the exclusive right to use a particular product name is a

The reason that innovation promotes competition is because