Possible sources of r and d financing

Question

Question 1) Differentiate between short run, the long run, and the very long run.

Question 2) Explain the elements of technological advance.

Question 3) Write down a specific example of invention, innovation, and diffusion.

Question 4) Compare and contrast the historical view of technological advance with contemporary view.

Question 5) Explain the role of entrepreneurs and other innovators in technological advancement.

Question 6) Identify and describe how a firm’s optimal amount of R&D spending is determined.

Question 7) Write down the possible sources of R&D financing.

Question 8) Describe how marginal utility theory can be used to find out the success or failure of a new product.

Question 9) Describe how process innovation adds to a firm’s profits.

Question 10) Explain and give an example of the “fast-second” strategy.

Question 11) Specify the protections and potential benefits for firms which take lead with R&D and innovation.

Question 12) Write down the strengths and weaknesses of each of the four basic market structures regarding the likelihood of R&D and innovation.

Question 13) Explain the inverted U theory.

Question 14) Explain the impact of technological advance on productive and allocative efficiency.

Question 15) Explain, and write down the example of “creative destruction”.