An effective way in which patents allow manufacturers to prevent the entry of new firms into the industry is through
a. creating perfectly inelastic demand.
b. threats of infringement suits.
c. creating tying contracts.
d. threats of triple damages.
b. threats of infringement suits.
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Suppose a decrease in the supply of wheat results in an increase in revenue. This indicates that
A) the demand curve for wheat must be vertical. B) the resulting increase in price is proportionately greater than decrease in quantity sold. C) the decrease in quantity sold is proportionately larger than the resulting change in price. D) the supply curve for wheat must be vertical.
Is beer taxation a regressive, proportional, or progressive tax if viewed as a point in time? Please explain your answer. What about if viewed over a person's lifetime? If your answer changes, please explain why
What will be an ideal response?
Consider the IS-LM curves for an economy with flexible exchange rates. An increase in the foreign income will result in the:
A) LM curve shifting to the right. B) IS curve shifting to the right. C) LM curve shifting to the left. D) IS curve shifting to the left.
Answer the following questions true (T) or false (F)
1. The basis for trade is comparative advantage, not absolute advantage. 2. If a country produces only two goods, it is possible to have a comparative advantage in the production of both those goods. 3. In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it cannot benefit by trading with the other country.