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15. Trade-induced market pressure on firms to adopt cleaner technologies requires A. imperfect competition among firms B. well-informed consumers C. government subsidies for research and development D. all of the above

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3 Sep 2018
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Related questions

14. Among the key requirements for an effective technique effect are A. subsidies for the use of cleaner technologies B. limits on consumer choice in the marketplace to ensure that only the least polluting goods are purchased C. higher prices on all goods to limit the strength of the scale effect D. well-informed consumers.

An increase in R&D induced by, say, government subsidies could result in a higher rate of product obsolescence, with new products replacing older ones at a faster rate. How does this "side-effect" of the subsidies affect firms' incentives to invest in research? (Hint: distinguish between firms with and without market power.)

13. Because patents are imperfect and do not apply well to all situations, alternative methods of improving the rate of return for inventors of the new technology include:

a. Government Spending on Research and Development

b. Tax Breaks for Research and Development

c. Cooperative research ventures between universities and companies.

d. All of the above

 

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