Your Company Discovers a Better Way to Produce Mousetraps,but Your

question 115

Multiple Choice

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.Your knowledge of how to more efficiently produce mousetraps is

• A)common technological knowledge.
• B)common,but not technological,knowledge.
• C)proprietary technological knowledge.
• D)proprietary,but not technological,knowledge.

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Definitions:

Subsidizing

The act of a government or organization providing financial support to reduce the cost of goods or services, often to encourage production or consumption.

External Benefit

A benefit that affects parties other than the buyers or sellers involved in a transaction, similar to a positive externality.

Traffic Congestion

A condition on road networks that occurs as use increases, characterized by slower speeds, longer trip times, and increased vehicular queuing.

Externality

An externality is a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in market prices.