What Term Best Characterizes the Battle Between Firms to Innovate

question 27

Multiple Choice

What term best characterizes the battle between firms to innovate first?

• A)Market for new ideas
• B)New product competition
• C)R&D race
• D)Innovation competition
• E)Patent race

---

Definitions:

Buyer Responsiveness

THe degree to which consumers change their demand for a product or service in response to changes in its price or attributes.

Fixed Costs

Business expenses that remain constant regardless of the level of production or business activity, such as rent, salaries, and loan payments.

Cross Elasticity

A measure of how the demand for one good responds to a change in the price of another good.

Normal Good

A good for which demand increases as the income of consumers increases, and falls when consumer income decreases.