How might innovation create or reduce monopoly power?
What will be an ideal response?
The efficiency gain from innovation can be reduced if patents and the advantages of being first lead to monopoly power. Monopoly power, however, can be reduced or destroyed by innovation because it provides competition where there was none. In this case, economic efficiency is improved because it fosters more competition that tends to drive down prices and reduces the costs of producing products.
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The Coase Theorem is the proposition that if the number of involved parties is low, if property rights ________ and transactions costs are ________, then private transactions are efficient
A) are nonexistent; low B) exist; high C) are nonexistent; high D) exist; low
Average variable cost is at a minimum when ______
A. marginal cost equals average variable cost B. average total cost is at a minimum C. marginal cost exceeds average fixed cost D. average total cost exceeds average variable cost
During most of the 1990s, average hours worked per week ____, then, after 2000 . started to ____
a. rose steadily; level off b. remained virtually constant; drop slowly. c. were on the upswing; fall slowly. d. continued to decline; level off
Which of the following statements is false?
A. The national debt is the sum of our deficits minus surpluses from George Washington's administration to the present. B. Half of the publicly held national debt is foreign owned. C. The national debt will have to be paid off eventually or the country will go bankrupt. D. Balancing the federal budget during a depression will make the depression worse.