Regarding New Inventions, Which of the Following Statements Is Not

question 136

Multiple Choice

Regarding new inventions, which of the following statements is not true?

• A)A new invention typically has little competition.
• B)This effective monopoly on the market earns the inventor abundant profit.
• C)That profit gets the attention of other potential inventors, who create competing products.
• D)Reduced to zero economic profits, the inventor goes out of business.

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Definitions:

Fixed Costs

Fixed Costs refer to business expenses that do not change, regardless of how much the business produces or sells.

Operating Cash Flow

The cash generated from a company's regular business operations, indicating its ability to cover operational costs and make new investments.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Fixed Costs

Costs that remain constant irrespective of the level of production or sales, including expenses like rent, salaries, and insurance.