In New Theories of "Endogenous Growth," Increasing Marginal Returns to Investment

question 76

Multiple Choice

In new theories of "endogenous growth," increasing marginal returns to investment can occur because

• A)investment costs for followers can be higher than for pioneers.
• B)knowledge provides the input that allows investment to be profitable.
• C)many investments require large fixed costs,the benefits of which are not available to subsequent firms.
• D)little risk is associated with the process of innovation for technological followers.
• E)early investors create an infrastructure favourable to followers.

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Definitions:

Convergence

The inward movement of the eyes as they focus on an object that is drawing nearer.

Visual Accommodation

The process by which the eye changes optical power to maintain a clear image or focus on an object as its distance changes.

Neonates

Newborn babies, especially those less than one month old.

Doula

A skilled expert dedicated to offering ongoing physical, emotional, and informative assistance to expectant mothers throughout pregnancy, during labor, and in the immediate postpartum period to ensure the most positive and healthiest childbirth experience.