If a Strong System of Appropriability Exists, the Innovator

question 3

Multiple Choice

If a strong system of appropriability exists, the innovator:

• A)Cannot capture a significant portion of the created value
• B)Cannot acquire the property rights of its innovation
• C)Can capture a significant portion of the created value
• D)Should try to sell its innovation to a large firm

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Definitions:

Drainage Pond

An artificial or natural pond designed to collect and retain stormwater or runoff, helping to manage excess water and prevent flooding.

Accounts Receivables

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of the company.

Opportunity Costs

This refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.