Which of the following is true?
a. Patents reduce a firm's incentive to develop new products.
b. Patents are given for new works of art or literature.
c. Patents give a permanent exclusive right to produce a new good.
d. Patents give a temporary exclusive right to produce a new good.
e. Patents guarantee economic profits.
D
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When prices are predetermined, the level of output that equals aggregate expenditure is called ________ output.
A. induced B. short-run equilibrium C. potential D. the natural rate of
Country X is the largest producer and exporter of oil in the world. Which of the following is likely to happen if the world demand for oil increases?
A) Country X's labor demand curve will shift to the right. B) Asset prices in Country X will fall. C) Country X's labor supply curve will shift to the left. D) Consumption expenditure in Country X will fall.
Average fixed costs:
A. always trend downward as output increases. B. always trend upward as output increases. C. are a constant, regardless of quantity of output. D. are a vertical line.
Three accountants can prepare 5 tax returns a day and four accountants can prepare 7 tax returns a day. If the marginal revenue product of hiring the fourth accountant is $300, then in a perfectly competitive product market the price of each tax return is
a. $250 b. $100 c. $300 d. $200 e. $150