The More an Innovative Product Embodies Multiple Technologies Owned by Different

question 26

Multiple Choice

The more an innovative product embodies multiple technologies owned by different companies:

• A)The less useful are patents to the innovating firm
• B)The more important it is for the innovating firm to develop capabilities that span a wide range of technologies
• C)The more important it is for the innovating firm to possess a strong patent portfolio that enhances its bargaining power with other technology-owning firms
• D)The more difficult it is for the innovating form to launch its innovation

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Definitions:

Misallocation

The inefficient distribution or use of resources in an economy, often resulting from market failures or government intervention.

Resources

Assets, materials, and inputs needed for the production of goods and services, including time, labor, capital, and natural resources.

Excess Demand

A market condition where the quantity demanded of a good exceeds the quantity supplied, leading to shortages.

Good

A tangible item or product that fulfills a need or desire and is available for purchase.