Question

Basic scientific research is research that may not have immediate commercial application, but has the potential to contribute to a diverse set of commercial applications in the future. For example, the basic science for laser beam technology was developed in Bell Laboratories in 1960. Since then laser technology has been used in medical technologies, data transmission and a host of other commercial applications. In this example, the development of laser technology created
a. positive externalities
b. negative externalities
c. imperfect information
d. imperfect competition

Answer 1

Answer:

A)  positive externalities

Explanation:

Positive Externalities represents a level of benefit that external or third parties can enjoy as a result of a a research or an economic transaction. It is the benefits that competitors in a business line for instance, can enjoy as a result of the technological breakthrough in product or process by a business.

In other words, as in the question, while Bell Laboratories developed the laser technology, competitors and other businesses have been able to incorporate the developed technology in various applications including data transmission, medical use among others.

Therefore, although they didn't develop the technology, they benefit from its development