Product Innovation and Development Is Efficient If the Marginal Social

question 21

Multiple Choice

Product innovation and development is efficient if the marginal social cost of a new and improved product ________ its marginal social benefit. In monopolistic competition marginal revenue is less than price, so product innovation is probably ________ to its efficient level.

• A)is greater than; not pushed
• B)equals; pushed
• C)is greater than; pushed
• D)equals; not pushed
• E)is less than; not pushed

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Definitions:

Mnemonic Device

Techniques a person can use to help them improve their ability to remember something.

Brain Waves

Patterns of electrical activity in the brain, measurable by EEG, which are indicators of different states of consciousness, such as sleep, relaxation, and focus.

Method of Loci

A mnemonic device that involves visualizing a familiar route or place to remember information sequentially by associating it with specific locations.

Recall Information

Recall information refers to the cognitive process of retrieving stored information from memory without the aid of cues.