What does it mean that “innovators try to anticipate the future”? What are the economics consequences of this effort?
What will be an ideal response?
Innovators attempt to anticipate future needs. They try to develop a new process or product that will have future commercial appeal. Product innovation and development necessary for anticipating the future are creative activities that have both monetary and non monetary rewards for the innovator.
More resources for further innovation by entrepreneurs often come from past successes. Those businesses that have succeeded in meeting consumer wants are given the opportunity to produce goods and services for the market.
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If a firm does NOT know its rival's profit function, then we consider that information to be
A) irrelevant in deciding its best strategy. B) private. C) common knowledge. D) Pareto sub-optimal.
The law of demand assumes that as the price of a good increases,
a. people recognize that its price may be even higher in the future, so they buy now rather than later b. consumers tend to shift their purchases to relatively cheaper substitutes c. people will buy less of it in the hope that the good will be cheaper in the future d. the consumer's money income increases, and he or she is less able to buy all goods, including the good whose price has increased e. the consumer's money income decreases, and if the product is a normal good, more will be purchased