Recall Application 2, "Why Not Walk Up an Escalator?," to Answer

question 118

Multiple Choice

Recall Application 2, "Why Not Walk Up an Escalator?," to answer the following questions:
-According to the application, an individual would walk up the escalator instead of just standing still if:

• A) the marginal benefit of walking up the escalator is greater than zero.
• B) the marginal benefit exceeds the marginal cost of walking up the escalator.
• C) the marginal benefit of standing still is greater than zero.
• D) the marginal benefit is less than the marginal cost of walking up the escalator.

---

Definitions:

Innovation

The process of creating new methods, products, or ideas that bring about significant improvements or changes.

Diffusion

The process by which a new idea, product, or practice spreads through a population or society.

Creative Destruction

The continuous process of annihilating old and outdated business models or products to create new ones that benefit the economy.

Patent

An exclusive right given to inventors to produce and sell a new product or machine for 20 years from the time of patent application.