The Ability of the DVCs to Use the Technologies of the IACs

question 62

Multiple Choice

The ability of the DVCs to use the technologies of the IACs is somewhat limited because

• A) the IACs have patents on most of their technologies.
• B) the IACs and the DVCs have much different resource endowments.
• C) the technologies of the IACs rely heavily on unskilled labor.
• D) IAC technologies are labor-intensive, while DVC technologies are capital-intensive.

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Definitions:

Barriers To Entry

Factors that prevent or hinder the ability of new competitors to enter and compete in an industry or market.

Monopolists

Entities or individuals that have exclusive control over the production and sale of a particular good or service, allowing them to manipulate market conditions.

Monopolist

A single seller in a market who has significant control over the price and supply of a product or service.

Perfectly Competitive Firm

A firm that operates in a market where there are many buyers and sellers, no barriers to entry or exit, and all firms sell identical products.