Managers Perceive Internal Product Development as a High-Risk Activity and Tend

question 75

Multiple Choice

Managers perceive internal product development as a high-risk activity and tend to choose acquisitions because approximately _______ percent of innovations are imitated within four years after patents are obtained.

• A) five
• B) ten
• C) sixty
• D) twenty

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Definitions:

Efficient Use

The optimal utilization of resources to achieve the highest possible output or satisfaction with the least possible waste.

Minimum ATC

The point on a firm’s average total cost curve where the cost is at its lowest, representing the most efficient scale of production.

Optimal Scale

The size of a company or factory at which the costs of production are minimized and productivity is maximized.

Long-run Equilibrium

A state in economic analysis where all inputs can be adjusted, market supply meets demand, and all firms in the market earn normal profit, indicating no entry or exit from the industry.