Which of the Following Is a Characteristic of Countries Where

question 11

Multiple Choice

Which of the following is a characteristic of countries where new-product development is strong?

• A)Competition is weak
• B)Demand is strong
• C)Consumers are having little to say
• D)Little money is spent on basic and applied research and development
• E)Markets are regulated

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Definitions:

Economic Profit

The difference between a firm’s total revenue and its opportunity costs (including both explicit and implicit).

Long-run Average Total Cost

The total cost per unit of output when all factors of production are variable, and economies of scale have been achieved.

Average Total Cost Curve

A graphical representation showing how the total cost of production per unit of output changes with the level of output.

Long-run Equilibrium

occurs when all firms in a market or industry are producing at their most efficient level, with no incentive for entry or exit, and economic forces are balanced.