Which statement about the effects of patents is TRUE?
A. Patents reduce the incentive to research and develop new products but also reduce competition in the market.
B. Patents increase the incentive to research and develop new products but also increase monopoly power once the products are created.
C. Patents increase the incentive to research and develop new products and also increase competition on the market.
D. Patents reduce the incentive to research and develop new products but increase monopoly power once the products are created.
Answer: B. Patents increase the incentive to research and develop new products but also increase monopoly power once the products are created.
You might also like to view...
The use of money adds to wealth because it tends to increase people's
A) options. B) risks. C) costs. D) expenditures. E) elasticity of demand.
The democratic political process is weighted in a manner that favors
A) contractionary over expansionary fiscal and monetary policies because changes in aggregate demand tend to affect output before they affect the price level. B) contractionary over expansionary fiscal and monetary policies because changes in aggregate demand tend to affect the price level before they affect output. C) expansionary over contractionary policies because changes in aggregate demand tend to affect output before they affect the price level. D) expansionary over contractionary policies because changes in aggregate demand tend to affect the price level before they affect output.
Derivatives can be used to reduce risk, but they also can be a source of risk in themselves.
Answer the following statement true (T) or false (F)
Which resource earns the highest economic rent as a proportion of total earnings?
a. a resource specialized in one task b. a nonspecialized resource c. a resource with inelastic demand d. a resource in low demand e. a resource with elastic demand