Consider the Significant Costs to the Innovators and Developers of 3D

question 19

Multiple Choice

Consider the significant costs to the innovators and developers of 3D printing technology.Modern growth theory suggests that

• A)there will be decreasing marginal returns to this investment.
• B)there will be constant returns to this investment.
• C)there will be increasing marginal returns to this investment.
• D)follower firms will face higher costs than the pioneer firms.
• E)the knowledge acquired in this innovation process will remain private.

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Definitions:

Residual Dividend Policy

A strategy where dividends are based on the earnings left over after all project capital needs are met.

Debt-Equity Ratio

The ratio that measures the relative proportion of shareholders' equity and debt used to finance a company's assets.

After-Tax Earnings

The amount of net income a firm has after all taxes have been paid, representing the company's profitability.

Retained Earnings

Profits that a company keeps or retains rather than distributing to shareholders as dividends, often used for reinvestment.