Business Firms Can Stimulate Innovation By

question 68

Multiple Choice

Business firms can stimulate innovation by:

• A)hiring employees who have low risk tolerance.
• B)letting employees know that they have the freedom to fail.
• C)using micromanagement techniques.
• D)talking to late adopters.

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Definitions:

Marginal Cost

The variation in overall expenses that occurs with a one-unit increase in production.

Typeset

The arrangement and setting of textual material in a specific style and size of type for printing.

Zero Marginal Cost

The situation in which producing an additional unit of a good or service does not incur any additional cost.

Fixed Cost

Costs that do not change with the level of production or output, such as rent, salaries, and loan payments.