In the Early Days of Computers,programmers and Designers Started Businesses

question 6

Multiple Choice

In the early days of computers,programmers and designers started businesses in their parents' garages and worked there until they were able to sell enough of their products to move into a location of their own.Anahi and Joelle started a small software and computer hardware.They have filed for a patent on their latest invention and are working on two others.Which of the following statements is correct regarding small business and technical innovation?

• A) Small firms produce two-and-a-half times as many innovations as large firms relative to the number of persons employed.
• B) Small firms employ a smaller percentage of high-tech workers as scientists,engineers,and computer specialists than medium- and large-sized firms.
• C) Large firms produce 16 to 17 times more patents per employee than small patenting firms.
• D) Studies show that the incidence of innovation among small-business workers is significantly lower than among workers in large businesses.

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Definitions:

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.

Competitive Price-Searcher

A market characteristic where firms actively seek to set prices competitively, often through differentiation, to attract customers.

Long-Run Equilibrium

A state in which all firms in a market are making just enough profit to stay in business, with no incentive for new firms to enter or existing firms to exit.

Price Taker

A market participant that accepts the market price as given and has no influence to alter the price of the good or service they buy or sell.