problem 1) Differentiate between short run, the long run, and the very long run.

problem 2) describe the elements of technological advance.

problem 3) prepare down a specific ex of invention, innovation, and diffusion.

problem 4) Compare and contrast the historical view of technological advance with contemporary view.

problem 5) describe the role of entrepreneurs and other innovators in technological advancement.

problem 6) Identify and describe how a firm’s optimal amount of R&D spending is determined.

problem 7) prepare down the possible sources of R&D financing.

problem 8) Describe how marginal utility theory can be used to find out the success or failure of a new product.

problem 9) Describe how process innovation adds to a firm’s profits.

problem 10) describe and give an ex of the “fast-second” strategy.

problem 11) Specify the protections and potential benefits for firms which take lead with R&D and innovation.

problem 12) prepare down the strengths and weaknesses of each of the four basic market structures regarding the likelihood of R&D and innovation.

problem 13) describe the inverted U theory.

problem 14) describe the impact of technological advance on productive and allocative efficiency.

problem 15) describe, and prepare down the ex of “creative destruction”.