A patent that confers the monopoly right to produce an essential prescription drug tends to increase the incentive the develop new and better prescription drugs, while
A. creating a "deadweight loss" of monopoly-induced inefficiency.
B. eliminating the monopolist's costs of defending its rights to the patent.
C. lowering the cost of prescription drugs to the public.
D. imposing no cost upon society as a whole.
Answer: A
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See the information in Scenario 4.4. Suppose P = 10, Pc = 100, Pd = 2, A = 5, and I = 50. What is the price elasticity of demand?
A) 0 B) -5/9 C) -1 D) -9/5 E) none of the above
Over the past 80 years, the overall price level in the U.S. has experienced a(n)
a. 4-fold increase. b. 10-fold increase. c. 13-fold increase. d. 17-fold increase.
Thomas Robert Malthus predicted that any given nation's population would double every _____ years.
Fill in the blank(s) with the appropriate word(s).
Answer the following statement(s) true (T) or false (F)
1. Monopolistic competition is a market structure where many producers of identical products compete with one another 2. Monopolistic competition is closer to competition than to monopoly. 3. Product differentiation is the accentuation of unique product qualities, real or perceived, to develop a specific product identity. 4. Price is one of the four main types of product differentiation. 5. Physical differences are considered to be a primary source of product differentiation.