Which of the Following Is an Advantage of Technology Leadership

question 113

Multiple Choice

Which of the following is an advantage of technology leadership?

• A) There is little risk involved.
• B) The infrastructure cost is low as the product is new.
• C) There is little or no competition.
• D) There is no need to develop complementary products.
• E) The market development cost is low.

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Definitions:

Diminishing Returns

A principle in economics indicating that adding more of one factor of production, while holding others constant, will at some point yield lower incremental per-unit returns.

Constant Costs

Costs that remain the same in total, regardless of changes in the volume of goods or services produced.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced; it shows the variable cost per unit.

Average Fixed Cost

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, decreases as production increases.