What is a patent race?
What will be an ideal response?
A patent race refers to a winner-take-all race. Suppose two investors are racing to develop an invention or to patent a discovery. The investor whodevelops the invention first or files the patent first will reap all the benefits. Although the other investors may have invested the same amount of money in research and development as the investor who filed the patent, they will not get any return on their investment.
A-head: DIVERSIFICATION
Concept: Patent race
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What is the influence of the expected profit and the real interest rate on the amount of investment firms make?
What will be an ideal response?
The limited ability to raise funds is a disadvantage for
A) sole proprietorships and partnerships. B) partnerships and corporations. C) sole proprietorships and corporations D) corporations.
Cross-price elasticity measures the responsiveness of the price of good A to a change in the price of good B
a. True b. False
A person acting as a supervisor as well as a residual claimant:
a. attempts to make value-maximizing investment decisions. b. aims to maximize a firm's sales. c. facilitates maximum investment in capital goods. d. reduces risk of opportunism.