A Significant Amount of Innovation Yields No New Products or Services

question 14

Multiple Choice

A significant amount of innovation yields no new products or services because:

• A)companies consider research and development a waste of resources.
• B)the chief purpose of innovation is to further scientific knowledge rather than create products or services.
• C)of R&D failure.
• D)the innovations are not related to a company's core processes.
• E)of the dearth of new ideas.

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Definitions:

AVC

Average Variable Cost, which is the variable cost per unit of output.

Long-run Equilibrium

A state in which all factors of production and costs are variable, leading to a situation where economic profits have been normalized or eliminated due to competition.

Constant Costs

Costs that do not change with the level of output or activity within a certain range.

Short-run Supply Curve

A graphical representation showing the relation between the price of a product and the quantity of the product that a firm is willing and able to sell, given fixed resources.