From an economic standpoint, patents reduce efficiency because they serve as a barrier to entry and thus limit market competition. Are there any positive economic benefits of patents? Explain
What will be an ideal response?
Yes. Patents provide an incentive for invention and innovation. Research requires resources that have opportunity costs. If research did not lead to expanded profits, little research would be done. Thus, if patents were not available to protect a firm's profits from competition, we would have less innovation.
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What are the three criteria that are used to judge a central bank's independence and how does the Fed stack up to each of these criteria?
What will be an ideal response?
Discrimination occurs when an employer hires a member of one group when another applicant, who is a member of a different group with different characteristics, has better qualifications and is likely to be more productive
Indicate whether the statement is true or false
If firms have to change their production techniques in order to change the quantities they supply, their response to a price change will be less in a period of a year as compared to what they can do in a month
a. True b. False Indicate whether the statement is true or false
Total profit for a firm is calculated as
a. marginal revenue minus average total cost. b. average revenue minus average total cost. c. marginal revenue minus marginal cost. d. (price minus average cost) times quantity of output.