Patents create monopolies, and monopolies have the ability to exercise market power. This ability results in all of the following except the ability to:
a. appropriate all surplus value turning it into monopoly profits.
b. restrict output below the social optimum.
c. charge higher prices.
d. gain exclusive rights to a market and sell a product for a specific time period.
a. appropriate all surplus value turning it into monopoly profits.
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Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.
Based on the figure above, which of the following factors could lead the demand curve to shift leftward from D0 to D2?
A) a rise in expected future U.S. exchange rate B) a fall in the U.S. exchange rate C) a rise in the U.S. interest rate D) a rise in the U.S. exchange rate E) a fall in foreign interest rates
Anjelica expects that her recent fatigue is being caused by pollution being dumped into a local stream by a factory in her community, and she wants to fix this problem
Briefly explain the transactions costs Anjelica is likely to experience in her quest to clean up the stream.
If a change in tastes is in favor of a commodity, that will mean a:
a. Movement down the demand curve b. Movement up the demand curve c. Shift in the whole demand curve to the left d. Shift in the whole demand curve to the right