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Management Studies

1. Why does a monopolist have less incentives to innovate than a perfectly competitive firm? Explain the meaning of the ‘replacement effect'.

2. Why does a monopolist threatened by entry have more incentives to innovate than a potential entrant? Explain the meaning of the ‘efficiency effect'.

3. Explain why firms might invest too much in R&D (from a social point of view) when they are racing to obtain a patent on an innovation.

4. Discuss the effects of strategic behaviour on firms' investments in R&D.

5. Is it a sensible policy to allow firms to coordinate their R&D decisions? Discuss.

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M92037066

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