Suppose Company P could create a socially beneficial product if they were sure they could make a profit by doing so. What could the government do to help them?
a. Grant a patent to Company P to eliminate competition for a period of time.
b. Pass legislation requiring Company P to create the product.
c. Place a restriction-of-trade tax on Company P if they fail to create the product.
d. Seize the plans for the product and create the product in a government facility.
a. Grant a patent to Company P to eliminate competition for a period of time.
One way to increase new technology is to guarantee the innovator an exclusive right to that new product or process, such as a patent.
You might also like to view...
The empirical data reveals the velocity of M2 to be:
A. relatively stable in the long run. B. higher than the velocity of M1. C. stable only when measured annually. D. highly volatile in the long run.
Which of the following is not a basic monetary policy tool used by the Fed?
A. The discount rate. B. The reserve requirement. C. Taxes. D. Open-market operations.
In order to hire additional laborers, a monopsony must
A) lower the supply of labor. B) raise the wage rate. C) advertise for the labor. D) do nothing.
Use the information provided in Table 7.4 below to answer the question(s) that follow. Table 7.4Inputs Required to Produce a Product Using Alternative TechnologiesTechnologyUnits of CapitalNumber of EmployeesA 836B 1224C 1616D 24 12Refer to Table 7.4. If the hourly price of capital is $40 and the hourly wage rate is $10, which production technology should be selected?
A. A B. B C. C D. D