A patent
A) always gives rise to a monopoly.
B) may not provide a barrier to entry.
C) allows the patent owner to capture all of the consumer surplus.
D) increases total welfare.
B
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If the minimum wage is above the equilibrium wage rate, then an increase in the minimum wage ________ employment and ________ unemployment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; increases
Big Ol’ Robots is a family company that has been in business for more than 15 years. The company has decided to incorporate. What will this mean for the ownership of the firm?
a. The corporation will be owned by its shareholders. b. The company’s owners will reinvest profits to obtain more capital. c. Venture capitalists will own a significant stake in the company. d. The original owners will step down and no longer be part of the company.
The variable cost of producing a college textbook is usually around ________ of its price.
A. 20% B. 50% C. 80% D. 40%
A price ceiling is, in essence, an implicit tax on producers and an implicit subsidy to consumers.
Answer the following statement true (T) or false (F)