If Firms in an Industry Are Generating Knowledge That Other

question 34

Multiple Choice

If firms in an industry are generating knowledge that other firms can use without paying for it,this industry is characterized by

• A)social costs that exceed private costs.
• B)social benefits that undermine private benefits.
• C)social benefits that exceed private benefits.
• D)private benefits that exceed social benefits.
• E)social costs that exceed social benefits.

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Definitions:

Rules

Guidelines or principles governing behavior or procedural conduct.

Behavior-Reinforcement Belief Expectancy

A concept in psychology that suggests an individual's belief in the likelihood of receiving reinforcement for a behavior influences the expectancy and motivation to perform that behavior.

Contiguity

The state of being close together in time or space, often used in psychology to describe the association between two stimuli or events.

Expectations

Beliefs or predictions about future events based on past experiences or information.