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    Exam 4: Overcoming Diminishing Returns: Technology As an Externality
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    In Both the Computer Memory Chip Industry and the Liberty
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In Both the Computer Memory Chip Industry and the Liberty

Question 1

Question 1

Multiple Choice

In both the computer memory chip industry and the Liberty ship program, unit costs declined:


A) about 50 percent per year.
B) about 10 percent with each new ship or chip produced.
C) about 20 percent with each doubling of output.
D) about 50 percent with each doubling of output.

Correct Answer:

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