One Reason That Investment in Innovation Is Often Considered to Have

question 75

Multiple Choice

One reason that investment in innovation is often considered to have increasing marginal returns is because

• A)new products increase firms' profits.
• B)R&D costs are negligible relative to firms' total costs.
• C)innovation is mostly through "leaning by doing."
• D)new ideas or innovations can spawn ever further new ideas and innovations.
• E)after the initial investment is made,subsequent investors face more difficult and expensive production problems.

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Definitions:

Primary Provider

The main entity or individual responsible for supplying a particular service, support, or necessity.

Nuclear Family

A family unit that includes only parents and their children living together, considered the smallest, most basic social unit in many societies.

Ultimate Authority

The highest or most supreme source of power and decision-making, often used in the context of governance, religion, or organizational leadership.

Married-Couple Families

Family units consisting of a married couple and their children, if any, living together as a single household.