Patents Stimulate Technological Advance by

question 112

Multiple Choice

Patents stimulate technological advance by

• A) making capital more productive.
• B) enabling the government to determine which potential technological advances firms should pursue.
• C) providing information about the status of technical knowledge in the economy.
• D) allowing inventors to capture the economic rewards of their inventions.

Understand and calculate the degree of financial leverage (DFL) and its implications for firm risk.

Understand the concept of market segmentation and its various bases (demographic, geographic, psychographic, end-use).

Identify the different types of marketing strategies (organization marketing, place marketing, cause marketing, idea marketing, mass customization, standardization).

Recognize the importance and methods of targeting a specific market.

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Definitions:

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Short Run

A period in economics during which some factors of production are fixed, making it impossible to change the level of output quickly.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Expand

To increase in size, number, or scope, such as a business growing its operations or a market increasing its reach.