When firms benefit from the results of research and development they didn't pay for, we say firms
A) maintain a level playing field. B) free ride.
C) are litigious. D) invest in knowledge capital.
B
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Firms that engage in price discrimination
a. will earn less profit than those that do not discriminate. b. will earn more profit than those that do not discriminate. c. are biased against certain buyers in the market. d. will always produce less output than firms that do not discriminate.
If the marginal cost of reducing pollution is positive, then:
A. the optimal amount of pollution is zero. B. the marginal benefit of reducing pollution is zero. C. the optimal amount of pollution is greater than zero. D. pollution should be reduced as much as technically feasible.
Many auction sites, such as eBay, provide a reputation score by which previous customers can rate a seller. Which of the following characteristics of a competitive market is this policy trying to emulate?
A) There is freedom of entry and exit. B) There are very low transaction costs. C) There are only one or two sellers. D) Buyers have more complete information.
A barrier to entry that grants exclusive use of an invented product or process to the inventor is called
A. a patent. B. economies of scale. C. the ownership of a scarce resource. D. a government franchise.