All of the Following Are Features of Innovation That Magnify

question 8

Multiple Choice

All of the following are features of innovation that magnify its contribution to GDP growth, except

• A) that many innovations create cumulative changes.
• B) the benefits of innovation are captured entirely by the individual/firm funding the innovation.
• C) that innovation has a public goods property.
• D) innovations act like an accelerator.

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Definitions:

Per Unit Profit

The profit earned from selling one unit of a product, calculated by subtracting the cost per unit from the selling price per unit.

MR = MC Rule

A principle in economics where the optimal level of output is reached when marginal revenue equals marginal cost.

Price Taker

An individual or company that must accept prevailing prices in the market of its products or services, lacking the market power to influence prices on its own.

Break Even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.