There Are Often Wide Differences Between the Productivity Levels of Different

question 42

Multiple Choice

There are often wide differences between the productivity levels of different factories making the same products because

• A) patent protections limit the benefits of innovation to the firm responsible for the innovation.
• B) some companies are more willing to take the risk of adopting a new technology than are others.
• C) the intensity of competition varies from industry to industry.
• D) some factories are located in innovation clusters and others are not.

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Definitions:

Corporate Shares

Units of ownership in a corporation, representing a portion of the corporation's capital.

Approval Of Stockholders

The formal consent given by shareholders, typically through voting, to authorize corporate actions or decisions.

Corporate Income

Income earned by a corporation through its business activities, subject to corporate income tax.

Federal Income Taxes

Taxes imposed by the U.S. federal government on taxable incomes of individuals, corporations, and other entities.