Other things being equal, the rate of new-product development seems to be greater in countries where
A) less money is spent on basic and applied R&D.
B) consumers are affluent.
C) underlying demand is weak.
D) competition is mild.

Question

Quizplus · Accepted Answer

Basic and applied research and development discovers new technologies and then commercializes them. Strong demand and affluent consumers create a potential market for new products. Intense competition between firms stimulates innovation as the firms try to beat their competitors and reap potentially enormous first-mover advantages that result from successful innovation.

Other Things Being Equal, the Rate of New-Product Development Seems