If a Project Requires a $20 Million Investment a Year

Multiple Choice

If a project requires a $20 million investment a year for the next two years, time compression diseconomies mean that you can't get the same results by spending $40 million in one year.MediCure Corp.is a pharmaceutical company that invested $30 million during the last financial year on research.The CEO of its rival company, PolyMed Inc., decides to spend $60 million on the research during the next year in order to exceed the findings of MediCure.However, PolyMed fails to get the same results.Which of the following best reflects the factor that acted as a barrier to imitation for PolyMed Inc.?

A) Tacit knowledge
B) Path dependence
C) Complexity
D) Time compression diseconomy