A Knowledge Spillover Occurs When Firms

question 166

Multiple Choice

A knowledge spillover occurs when firms:

• A) restrict trade of inputs with each other.
• B) have wasteful expenditure.
• C) mimic the successful innovations of other firms.
• D) keep secrets from other firms.

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Definitions:

Tax-Free Acquisition

A type of corporate merger or acquisition structured in a way that allows for the transfer of assets without incurring federal income tax liabilities.

Capital Gains

The increase in value of an investment over its purchase price.