Because Firms Must Be Developing New Products All the Time,which

question 215

Multiple Choice

Because firms must be developing new products all the time,which of the following statements is true?

• A)Competitors are likely to rapidly introduce product improvements in the market growth stage.
• B)The developed economies experience technological advances more rapidly than the less-developed economies.
• C)Although the life of different products varies,product life cycles are getting shorter.
• D)One new invention may make possible many new products to replace old ones.
• E)All these answers are correct.

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Definitions:

Marginal Social Cost

This refers to the entire cost society bears for the production of an additional unit of a good, including both private costs borne by producers and external costs absorbed by others.

Common Resource

A resource like air or water that is non-excludable and rivalrous, meaning it's difficult to prevent anyone from using it, and one person's use diminishes others' use.

Common Resource

A resource like air or water that is not owned by anyone, but can be used freely by the public, often leading to overuse and depletion.

Socially Optimal

A condition or point at which the benefit to society is maximized, often considered in economic contexts to represent the most efficient allocation of resources.