Which of the Following Is NOT Typically True of an Innovation

question 27

Multiple Choice

Which of the following is NOT typically true of an innovation cluster?

• A) A major university is usually present.
• B) The cluster has a pool of skilled labor that can move from one company to another.
• C) Financial sources, like venture capital firms, tend to locate in the same area.
• D) The chances of innovations occurring tend to decline as the innovation cluster gets larger and as the available talent is used up.

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Definitions:

Close Substitutes

Close substitutes are different goods or services that can satisfy the same needs or desires, often with very little difference from the consumer's perspective.

Silk-Screened T-Shirts

T-shirts printed using a technique that forces ink through a mesh screen to create a design.

Long Run

A period in which all factors of production and costs are variable, allowing all inputs to be adjusted to meet changes in the market.

Zero Economic Profit

Occurs when a firm's total revenues are exactly equal to its total costs, including both explicit and implicit costs, indicating no abnormal profit above the normal rate of return.