ECO 167 Winter 2018 Test Exam III This Question 4 pts 17 of

ECO 167- Winter 2018 Test: Exam III This Question: 4 pts 17 of 24 (23 complete) O B. Large firms who invest billions annually in R&D;

Solution

c) BOTH SMALL AND LARGE FIRMS CONTIBUTE EQUALLY AND STEADILY TO TECHNOLOGICAL INNOVATION

In general, the relative strengths of small firms in general depend upon the behavioral characteristics. Greater motivation as an example in management and labor because of the tangled possession and creativeness in the tasks of workers, administration, and more distinction and tacit information in unique skills, more well-organized communication, as well as flexibility. In case of small firms it is not for all time simple to take apart the effects of market power along with the firm size, because the two are evidently interrelated with each other. While arguing that firms having control over monopoly power would be more tending to innovate as they are able in a better way to realize the rewards from innovation. In addition, firms realizing monopoly profits are supposed to be in a better position to finance R&D from internal sources.