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    Exam 16: The Market's Prime Achievement: Innovation and Growth
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    There Is Assumed to Be a "Ratchet" Effect When It
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There Is Assumed to Be a "Ratchet" Effect When It

Question 14

Question 14

Essay

There is assumed to be a "ratchet" effect when it comes to firms in an industry and their spending on R&D.Explain what it is about the market economy that produces that effect.

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A ratchet is an arrangement that permits...

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