Two years of research and $20 million in investment a year for the next two years is required to get results for MediCure's new pharmaceutical experiment. The CEO of a rival company, PolyMed Inc., decides to spend $60 million on only one year of research. However, PolyMed fails to get the same results. Which of the following best reflects the factor that acted as a barrier to imitation for PolyMed Inc.?
A)Tacit knowledge
B)Path dependence
C)Complexity
D)Time compression diseconomy

Question

Quizplus · Accepted Answer

Time compression diseconomy is the factor that acted as a barrier for PolyMed Inc. This concept suggests that doubling the resources (in this case, the investment) does not halve the time needed to achieve the same results, especially in complex processes like pharmaceutical research.

Two Years of Research and $20 Million in Investment a Year