Exam 16: The Knowledge Economy

If a seller incurs an obligation to generate an ancillary obligation of a certain value to offset the initial buyer's capital expenditure, then there is a(n)____ in place.

Entrepreneurs

If a firm experiences decreases in the per-unit costs of production as its network increases, then this firm is experiencing

Entrepreneurs are usually found in smaller firms.

An organization with hierarchy

Websites make money by charging to access the site.

If diminishing marginal returns is in effect

Marginal costs and marginal benefits

If a knowledge worker knows more than has manager it makes

In the knowledge economy

For patents to be effective

Increasing returns

Dominant firms tend to lag in innovation because

Knowledge has become measurably more important in today's economy.

Knowledge workers have

The value of a network

Diminishing marginal returns to labor means

The information content of a product can never be separated from the physical aspect of the product.

If increasing returns is in effect

If marginal costs are falling and below average costs, then average costs must be falling too.