Which statement is NOT true?
A) Ideas for increasing output are primarily researched, developed, and implemented by profit-seeking firms.
B) Ideas can be freely shared, but spillovers mean that ideas are underprovided.
C) Government has a role in improving the production of ideas.
D) The smaller the market, the greater the incentive to research and develop new ideas.

Question

Quizplus · Accepted Answer

The statement that "the smaller the market, the greater the incentive to research and develop new ideas" is not true. In fact, larger markets often provide greater incentives for firms to research and develop new ideas because the potential returns are greater.

Which Statement Is NOT True