Economic analysis suggests that patent laws that can often be used to limit the entry of potential competitors into an industry
a. redistribute income from consumers to business decision makers without affecting the allocation of resources.
b. may be a source of business monopoly power, but they may also encourage innovation in the long run.
c. encourage product development and the adoption of cost-reducing technologies in the short run but in the long run generally lead to business monopoly.
d. help inventors at the expense of consumers in the long run.
B
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In order to be successful as an innovator, a firm may require:
a. constant investment in mergers and acquisitions. b. frequent expansion of its scale of operation. c. to invest the majority of its annual profit in market research. d. research facilities and a culture that respects scientists and engineers.
Which of the following would be most likely to have monopoly power?
a. an online bookstore b. a municipal water company c. a local restaurant d. a grocery store
Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is
a. structurally unemployed. Structural unemployment exists even in the long run. b. structurally unemployed. There is no structural unemployment in the long run. c. frictionally unemployed. Frictional unemployment exists even in the long run. d. frictionally unemployed. There is no frictional unemployment in the long run.
The main area of economic activity that Canada chose not to open to free trade is
A) agriculture. B) lumber. C) cultural industries. D) financial services.