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

question 5

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 favorable to followers.

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Definitions:

LP Records

Long-playing vinyl records, a format for sound recording and playback that gained popularity in the mid-20th century.

Phonograph

An early sound-reproducing machine that used cylinders or discs to record and reproduce sound mechanically.

Liberal Judges

Judges who are generally open to reform and are often associated with advocating for civil liberties and rights.

Conservative Judges

Judges who tend to adhere to traditional values and principles in making legal decisions, often favoring judicial restraint over activism.