The Ability of the DVCs to Use the Technologies of the IACs

question 62

Multiple Choice

The ability of the DVCs to use the technologies of the IACs is somewhat limited because

• A) the IACs have patents on most of their technologies.
• B) the IACs and the DVCs have much different resource endowments.
• C) the technologies of the IACs rely heavily on unskilled labor.
• D) IAC technologies are labor-intensive, while DVC technologies are capital-intensive.

---

Definitions:

Price Elasticity of Demand

A gauge for determining how changes in price impact the amount of a good that is demanded.

Starbucks Coffee

Starbucks Coffee is a global coffeehouse chain and brand originating from Seattle, Washington, known for its signature coffee drinks and emphasis on customer experience.

Absolute Value

The non-negative value of a number without regard to its sign; for example, the absolute value of both -5 and 5 is 5.

Perfectly Vertical

Describes a line or curve on a graph that has an infinite slope, representing a situation where a given variable is unaffected by changes in other variables.