On balance, does market power promote or retard technological innovation?
What will be an ideal response?
The evidence is not clear-cut. While small competitive firms have great incentive to innovate to gain a competitive edge over rivals, larger firms have greater resources to devote to research.
On the question of firm size and R&D spending, there is evidence that competitive industries with very small firms devote fewer resources to R&D. Up to a point, R&D rises and rates of innovation rise with firm size. However, some of the most significant innovations in the twentieth century have been introduced by small firms. Examples include electric lighting, photocopiers, and electronic calculators. It should be noted, though, that large firms are often superior marketers of technological innovations where small firms are not.
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Which of the following is included in gross domestic product for an economy in a given year?
A) the value of used goods sold in that year B) the value of final goods produced in that year C) the value of intermediate goods produced in that year D) All of the above would be included in gross domestic product for an economy in a given year.
Provide an example of each allocation method that illustrates when it works badly
What will be an ideal response?