Suppose a new vaccine for Lyme disease is developed by Merck, a large drug company. Which of the following is most likely to occur?
A) Merck will apply for a patent on the vaccine that grants it the monopoly rights to the vaccine for many years.
B) Merck will have a monopoly on this vaccine because of economies of scale.
C) Other firms will quickly copy the formula making the market for the vaccine competitive.
D) Merck will not tell anyone about its discovery though it will sell the vaccine.
A
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If, when you consume another piece of candy, your marginal utility is zero, then
A) you want more candy. B) you have not yet reached the point of diminishing marginal utility. C) you should consume less candy. D) you have maximized your total utility from consuming candy.
Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Figure 3.1 Shifts of Supply and Demand Candy bars: People become more health-conscious and prefer vegetables instead of candy bars.
A. A. B. B. C. C. D. D.
What is the typical role of a central bank?
A. It serves as a lender of last resort. B. It serves as a bank for the national treasury. C. It regulates depository institutions. D. all of these
Externalities occur
A) only when a person acts out of greed. B) only when a person acts out of selfish interest. C) only when a person is concerned with personal profit. D) only when the decision maker does not take into account all the benefits or costs from an action.