An innovation is the conception of a new product or process, along with the proof that it will work.

True

False

If a process innovation increases the economy (as opposed to the efficiency) of a process, it will increase profits by increasing revenue relative to costs.

True

False

If a product innovation results in a significant improvement over the existing products, the availability of good substitutes for that product will go down, thus making the demand curve for the improved product more elastic.

True

False

Which of the following inventions allowed for miniaturization?

	A.	The transistor
	B.	The micro computer
	C.	The electric battery
	D.	The Bessemer Process