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.

---

Definitions:

Profit-Maximizing

The method or plan of altering manufacturing and sales activities to maximize profit.

Marginal Cost

The expense incurred from manufacturing an extra single unit of a service or product.

Monopolist

A monopolist is a market participant who has exclusive control over the supply of a particular good or service, setting prices with minimal competition.

Profits

The difference between a business's revenues and its expenses.