Microeconomics (7th Edition)
Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 2, Problem 2.3.12PA

Subpart (a):

To determine

Rewards of entrepreneur.

Subpart (b):

To determine

Rewards of entrepreneur.

Subpart (c):

To determine

Rewards of entrepreneur.

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Briefly explain the term incremental innovations. Which companies in terms of the size (small, medium, large size) have more economic incentives to produce these?
According to an article on Barrons.com, "Investment firms are starting to use Al (artificial intelligence] to execute trades [of stocks, bonds, and other financial securities], manage portfolios, and provide personalized service to their clients." The article notes that other financial firms, including banks, insurance companies, are using Al to decrease costs and increase the accuracy of compliance with government regulations, and to "free employees to work on more valuable jobs." Source: Scott Likens, "How Artificial Intelligence is Already Disrupting Financial Services" Barrons.com, May 16, 2019. Does the use of Al increase or decrease labor productivity? Increase, because the use of Al represents technological advance. Decrease, because the use of Al increases the stock of capital Increase, because the use of Al raises investment returns. O Decrease, because the use of Al reduces the number of work hours in the economy.
what is artificial scarcity ?
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