Innovation Is a Process That Results in New Market Value

question 18

Multiple Choice

Innovation is a process that results in new market value through the creation of:

• A)financial capital.
• B)human capital.
• C)productivity.
• D)a product or service.

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Definitions:

Elastic Demand

A market condition where the demand for a product or service significantly changes in response to price changes.

Opportunity Cost

The cost of a missed opportunity; the value of the best alternative forgone.

Direct Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, based directly on the willingness to pay.

Arbitrage

The practice of buying and selling equivalent goods in different markets to take advantage of price differences for profit.