Investment in Innovation Is Often Considered to Have Increasing Marginal

question 2

Multiple Choice

Investment in innovation is often considered to have increasing marginal returns because

• A)after the initial investment is made, subsequent investors face more difficult and expensive production problems.
• B)of market development costs and the "public good" nature of knowledge.
• C)innovation is mostly through "leaning by doing".
• D)new products increase firms' profits.
• E)R&D costs are negligible relative to firms' total costs.

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Definitions:

Negligent

Failing to take proper care in doing something, leading to damage or injury to another.

Foreseeable Harm

Damage or injury that a reasonable person should have anticipated as a likely outcome of their actions.

Intoxicated Viewer

A person under the influence of alcohol or drugs while watching media, affecting their perception and interpretation.

Exculpatory Clause

A clause in a contract or trust instrument that excuses a party from some duty.