A firm is concerned about the possibility of patent infringement and has hired an attorney to review patents. If the attorney is reviewing 100 patents and the marginal cost of reviewing the 100th patent is $50 and the expected marginal benefit of reviewing the 100th patent is $50, which of the following is true?
A) The firm is maximizing the total cost of infringement.
B) The firm is minimizing the total cost of infringement.
C) The firm's total cost of infringement will decrease if the number of patents reviewed decreases.
D) The firm's total cost of infringement will decrease if the number of patents reviewed increases.
B) The firm is minimizing the total cost of infringement.
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The table above gives the utility from pens and pencils. If pens and pencils both cost $.25 each and the consumer has an income of $2.25, which of the following combinations maximizes the consumer's utility?
A) 3 pens and 6 pencils B) 4 pens and 5 pencils C) 5 pens and 4 pencils D) 6 pens and 3 pencils
The basic proposition in international trade is that
A) trade is determined by absolute advantage. B) in the long run, imports are paid for by exports. C) everyone is made better off by free trade. D) fair trade is more important than free trade.
If MRP = MLC, the firm
a. is employing the optimal quantity of workers b. should decrease the quantity of labor it employs c. should lower the wage rate d. should increase the quantity of labor it employs e. should raise the wage rate
Capitalism is an economic system in which the production process is controlled primarily by private firms operating in markets
a. True b. False Indicate whether the statement is true or false