When Firms Benefit from the Results of Research and Development

question 198

Multiple Choice

When firms benefit from the results of research and development they didn't pay for,we say firms

• A)are litigious.
• B)free ride.
• C)invest in knowledge capital.
• D)maintain a level playing field.

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Definitions:

Vertical Merger

A merger between two or more companies operating at different stages in the production process of a good or service.

Horizontal Merger

A merger between companies that operate in the same industry, often leading to consolidation in the market.

Herfindahl Index

A measure of market concentration, calculated by squaring each company's market share in the industry and then summing the squares.

Market Power

The ability of a company or entity to influence the price and output levels in a market.