In Many High-Tech Industries in the Economy, Such as Computers

question 70

Multiple Choice

In many high-tech industries in the economy, such as computers, medical equipment, and automobiles,

• A)price competition is utilized by firms more than innovation to compete with rivals.
• B)firms compete on the basis of innovation only; never engaging in price competition.
• C)innovation is utilized by firms to compete with rivals more than price competition.
• D)firms use price competition only; never engaging in innovation to compete with rivals.
• E)firms utilize innovation and price competition equally to compete with rivals.

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Definitions:

Consumption

Pertains to the aggregate volume of products and services that are purchased and consumed by families and people.

MPC

The marginal propensity to consume, which is the fraction of additional income that a household spends on consumption.

Disposable Income

Financially viable resources for households' spending and saving strategies after deducting income taxes.

Consumption

The action of using up a resource or the purchase of goods and services by households.