This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: -Expected, not guaranteed-Adjustments may be necessary-Increased Profit via Innovation • Increased Revenue-Consumers will buy a new product only if it increases the total utility they obtain from their limited incomes.-Importance of Price-Unsuccessful New Products-Product Improvements • Reduced Cost-Downward shift of the firm’s ATC curve-Imitation versus Innovation • A firm’s rivals may be able to imitate its new product or process, greatly reducing the originator’s profit from its R&D efforts.-Fast-second strategy • Benefits of Being First-Patents -Copyrights and Trademarks-Brand-Name Recognition-Trade Secrets and Learning by Doing-Time Lags-Profitable Buyouts-Role of Market Structure • Pure Competition • M-C • Oligopoly • Pure Monopoly • Inverted-U Theory • Empirical Evidence-Technological Advance and Efficiency • Productive Efficiency • Allocative Efficiency • Creative Destruction...
View Full Document
This note was uploaded on 04/07/2008 for the course ECON 1001 taught by Professor Kelly during the Fall '08 term at Villanova.
- Fall '08