Is innovation within existing firms important? Explain and give examples
What will be an ideal response?
Many large businesses have research and development units that create new products and improve existing products. These firms have pay systems that reward workers with a bonus or share of the profits from the innovation in addition to a salary. These corporations are often responsible for major innovations and improvements in a variety of consumer products such as televisions, telephones, home appliances, and automobiles. An example is the 3M Corporation, which developed Post-It Notes and Th insulate insulation. Also, businesses have spun off their research and development units to create new firms. Some examples include Lu cent Technologies, a firm formed by ATT & T, and Intimation, a firm formed by 3M.
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A signaling theory of education suggests that
a. people who attend college are more likely to capture a "beauty premium." b. education is a signal of social status. c. education does not necessarily increase productivity. d. education will sever the link between innate ability and compensation.
Holding all else constant, an increase in the preferences of Americans for Mexican goods will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase