Two Years of Research and $20 Million in Investment a Year

question 47

Multiple Choice

Two years of research and $20 million in investment a year for the next two years is required to get results for MediCure's new pharmaceutical experiment. The CEO of a rival company, PolyMed Inc., decides to spend $60 million on only one year of research. However, PolyMed fails to get the same results. Which of the following best reflects the factor that acted as a barrier to imitation for PolyMed Inc.?

• A)Tacit knowledge
• B)Path dependence
• C)Complexity
• D)Time compression diseconomy

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Definitions:

Standard Deviation

A measure of the dispersion or spread of data points in a data set, indicating how much variation exists from the average.

Standard Deviation

A measure of the dispersion or spread of a set of data points from their mean, indicating the variability within the dataset.

Budget Line

A diagram showing all imaginable combinations of two products that can be bought given a fixed budget at unchanged price points.

Expected Rate

The forecasted or anticipated rate of return on an investment or the future rate of interest on a loan.