If Firms in an Industry Are Generating Knowledge That Other

question 2

Multiple Choice

If firms in an industry are generating knowledge that other firms can use without paying for it, this industry is characterized by

• A) social costs that exceed private costs.
• B) social benefits that exceed private benefits.
• C) social costs that exceed social benefits.
• D) private benefits that exceed social benefits.
• E) social benefits that undermine private benefits.

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Definitions:

Underextension

The overly restrictive use of words, common in early language development, where a child uses a word only for a specific object rather than for all objects that belong to a particular category.

Referential Style

A language learning approach in which individuals predominantly use language to refer to people and objects in their environment.

Holophrasing

The use of a single word by a child to express a complex idea or complete thought, typical in early language development.

Prelinguistic Communication

Communication through sounds, facial expressions, gestures, imitation, and other nonlinguistic means.