Because Knowledge Capital Is Nonexcludable and Nonrival,firms Have an Incentive

question 102

Multiple Choice

Because knowledge capital is nonexcludable and nonrival,firms have an incentive to ________ the research and development of other firms.

• A)make bids on
• B)not use
• C)ignore
• D)free ride on

---

Definitions:

Predatory Pricing

The practice in which a company prices one product below normal cost until competitors are eliminated and then it sharply increases the price.

Spirit Airlines

A low-cost carrier in the United States known for offering budget-friendly air travel options.

Northwest Airlines

A major airline based in the United States that operated until it merged with Delta Airlines in 2010.

Per Se Violations

In law, actions or situations that are inherently illegal and do not require further proof of illegality or intent to enforce penalties.