In New Theories of "Endogenous Growth," Increasing Marginal Returns to Investment

question 5

Multiple Choice

In new theories of "endogenous growth," increasing marginal returns to investment can occur because

• A)investment costs for followers can be higher than for pioneers.
• B)knowledge provides the input that allows investment to be profitable.
• C)many investments require large fixed costs,the benefits of which are not available to subsequent firms.
• D)little risk is associated with the process of innovation for technological followers.
• E)early investors create an infrastructure favorable to followers.

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Definitions:

Variety of Tasks

Variety of tasks refers to having a diverse range of different activities or duties within a job role, often contributing to increased satisfaction and engagement at work.

Biorhythms

The study of cyclic patterns in biological activities and processes, suggesting that physical, emotional, and intellectual life phases follow regular patterns.

Work Simplification

The process of streamlining work processes to increase efficiency, reduce complexity, and eliminate unnecessary tasks.

Ergonomics

The study of designing equipment, devices, and processes that fit the human body and its cognitive abilities.