Use the Figure Below to Answer the Following Questions

question 2

Multiple Choice

Use the figure below to answer the following questions. Figure 2.1.1
-Complete the following sentence.In Figure 2.1.1,

• A)movement from A to B would require a technological advance.
• B)point B is a point of production efficiency.
• C)some resources must be unused at point C.
• D)the concept of decreasing opportunity cost is illustrated.
• E)movement from C to B would require a technological improvement.

Understand the modern view of technological advance as an internal element of capitalism driven by profit motives and competition.

Recognize the distribution of business R&D spending among innovation, invention, and basic research.

Grasp the concept of diffusion through the adoption of innovations by competitors or other industries.

Identify the characteristics and examples of start-up firms.