The Distinction Between Codifiable and Tacit Knowledge Is Relevant to a Firm's

question 20

Multiple Choice

The distinction between codifiable and tacit knowledge is relevant to a firm's ability to appropriate the returns to its innovation because:

• A)Technological progress involves advances in codifiable knowledge-hence it is more important
• B)Patents and copyrights must be articulated clearly-hence they embody only codifiable knowledge
• C)Tacit knowledge related primarily to traditional skills that are becoming increasingly irrelevant in today's digital economy
• D)If an innovation lacks legal protection,then,if it based on tacit knowledge it cannot be easily be imitated

---

Definitions:

Factors of Production

The resources used in the production of goods and services, typically categorized into land, labor, capital, and entrepreneurship.

Entrepreneurial Ability

The skill or talent required to conceptualize new products or services, create businesses, and achieve economic success.

Economic Resources

Inputs used in the production of goods and services, often categorized into land, labor, capital, and entrepreneurship.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget at specific prices.