The Extent to Which an Innovation Can Be Imitated by a Competitor

question 11

Multiple Choice

The extent to which an innovation can be imitated by a competitor depends on

• A)whether the competitors' experts are as clever as our experts.
• B)whether a competitor can get a photocopy of the patent details.
• C)how ruthless the competitor is.
• D)how possible it is for the competitors' experts to comprehend, codify and replicate the technology.

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Definitions:

Specialization

The process of focusing on and becoming expert in a particular subject or skill, often resulting in increased efficiency and productivity in economic contexts.

Exchange

The act of giving one thing and receiving another (especially of the same type or value) in return.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors, contributing to efficiency in international trade.

Economic Principle

A basic concept or rule that underlies the functioning of economies, guiding the allocation of resources.