Which of the following statements regarding patents is false?
A) Patents can help firms gain market power through innovation and then act as a barrier to entry.
B) A firm that has market power as a result of a patent may be more likely to innovate than a perfectly competitive firm.
C) Patents encourage the production of information, which might otherwise be under supplied.
D) Patents can last for an indefinite time period.
D
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From a strictly economic perspective, immigration should be:
A. Expanded until its marginal benefits equal its marginal costs B. Expanded until its total benefits equal its total costs C. Expanded as long as its marginal costs exceed its marginal costs D. Reduced if its marginal benefits exceed its marginal costs
Over the last 50 years, the poor have:
A. become richer at a slower rate than the rich, and so inequality has grown. B. become richer at a slower rate than the rich, and so inequality has decreased. C. become richer at the same rate as the rich, and so inequality has stayed the same. D. become poorer, while the rich have become richer, and so inequality has grown.
What happens to bond prices when the interest rate decreases?
a) They would decrease. b) They would increase. c) They would stay the same. d) They would fluctuate based on the quantity of money.
The table above shows output and costs of Evan's Subs, a typical perfectly competitive firm in a local market for sandwiches. Evan's fixed cost is $9 per hour. The current market price of a sandwich is $6
If the market price does not change, Evan's will A) continue to operate in the short run, but will exit the industry in the long run. B) continue to operate in the short run and in the long run. C) shut down. D) increase its production in the long run.