Question 1 (10 points) Which of the following is one way that market power can lead to innovation? O A) Production is more expensive for firms with more market power than firms with less market power, leading them to look for new ways to produce. ( B) There is more social pressure on firms with large market power to innovate. ( C) Increased market power means there is more competition, leading firms to compete more. (O D) Firms are able to make increased economic profit which can be used for innovation. Question 2 (10 points) Which of the following is NOT true about large firms? O A) Large firms have more resources to exploit an unexpected discovery. O B) Large firms have advantages in financial markets. O C) Large firms cannot exploit economies of scale, so they must use innovation to reduce cost. O D) Large firms can spread the cost of research over a larger sales base. Question 3 (10 points) According to Arrow's analysis, which firm has more potential gain from innovating? O A) Monopolist O B) Perfectly competitive firm Question 4 (10 points) TRUE or FALSE: More concentrated industries have more innovation, but firms that have high market share innovate less. O True FalseMUESLIVII J ( LU PUIIILS TRUE or FALSE: The introduction of new autonomous technology to a production line to enhance production is an example of a product innovation. O True False Question 6 (10 points) Which of the following is not a government intervention to increase R&D? A) Tax breaks for innovative activity O B) Rely on market structure to increase R&D. O C) Subsidies for private R&D O D) Government sponsored research at independent laboratories Question 7 (10 points) Which of the following is not an intellectual property right? O A) Copyright O B) Trademark O C) Patent O D) Trade secret Question 8 (10 points) A new composite material used in manufacturing would need a... O A) Design patent O B) Plant patent O C) Copyright O D) Utility patent Question 9 (10 points)TRUE or FALSE: The existing system of intellectual property rights in the U.S. is extremely effective at promoting innovation and creativity. O True False Question 10 (10 points) TRUE or FALSE: The private return to R&D is much greater than its social return. O True False Question 11 (10 points) Which of the following is NOT a commonly cited reason that firms use patents? To protect their innovations from imitation. To block others from patenting something similar. O To enhance their firm's reputation in the industry. As a means of charitably giving to society. Question 12 (10 points) Which of the following is NOT a commonly cited means of protecting an innovation? O Keeping it a secret. O Owning complementary tangible and/or intangible assets. O Being fast and being first. Calling "dibs" on it as soon as you have the idea. Question 13 (10 points) TRUE or FALSE: Scientists from high-tech firms meeting with scientists from other high-tech firms at international conferences to discuss each others' research is an example of an R&D input spillover. True False Question 14 (10 points) TRUE or FALSE: The potential losses from NOT innovating in a market can be just as much of an incentive to innovate as the monopoly profit promised by patent protection. True FalseI O To block others from patenting something similar. To enhance their firm's reputation in the industry. O) As a means of charitably giving to society. Question 12 (10 points) Which of the following is NOT a commonly cited means of protecting an innovation? Keeping it a secret. OOwning complementary tangible and/or intangible assets. Being fast and being first. Calling "dibs" on it as soon as you have the idea. Question 13 (10 points) TRUE or FALSE: Scientists from high-tech firms meeting with scientists from other high-tech firms at international conferences to discuss each others' research is an example of an R&D input spillover. True False Question 14 (10 points) TRUE or FALSE: The potential losses from NOT innovating in a market can be just as much of an incentive to innovate as the monopoly profit promised by patent protection. O True False Question 15 (10 points) Which of the following is the best example of a process innovation? Self-lacing tennis shoes A new kind of non-stick surface that is 50% less sticky O Hydraulic fracturing (fracking) O A quantum computer