According to New Growth Theory,economic efficiency is maximized if:
A) new ideas are priced in such a way that incorporates all the fixed costs, but not the variable costs, that were incurred in developing the idea
B) new ideas are priced at zero
C) new ideas are priced in such a way that incorporates all variable costs, but not the fixed costs, that were incurred in developing the idea
D) new ideas are priced in the same way as any other commodity
E) the prices of new ideas gradually rise after these ideas have been made commercially available
Correct Answer:
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