An In the News article titled "Jury Rules Magnetek Unit Is Liable for Keeping Technology off Market" reported, "A county superior court jury in Oakland ordered a unit of Magnetek Inc. to pay $25.8 million to two California entrepreneurs . . . the unit had failed to bring the pair's energy-saving fluorescent-light technology to market in a profitable manner . . . in favor of an outmoded technology." The most correct implication of this quotation is that Magnetek
A) Attempted to suppress R&D.
B) Is a highly efficient, high-tech industry.
C) Makes zero economic profits.
D) Charges lower prices than might be expected in a competitive market.

Question

Quizplus · Accepted Answer

The article suggests that Magnetek suppressed the entrepreneurs' energy-saving fluorescent-light technology in favor of an outmoded technology, implying that they failed to bring the new technology to market in a profitable manner. This behavior indicates that Magnetek may have attempted to suppress R&D. There is no evidence provided in the article suggesting that Magnetek is a highly efficient, high-tech industry, makes zero economic profits, or charges lower prices than might be expected in a competitive market.

An in the News Article Titled "Jury Rules Magnetek Unit