If Congress reduced the period of patent protection from 20 years to 10 years, what would likely happen to the amount of private research and development?
A. Shorter patent protection would make innovation less lucrative, so the amount of research and development would likely decline.
B. Companies would simply stop their research and development. because the cost is not worth the return.
C. Companies would spend more on research because the patent period is shorter.
D. Companies would not likely change their research and development amounts because they need innovation to survive.
Answer is A.Shorter patent protection would make innovation less lucrative, so the amount of research and development would likely decline.
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Why do publishers print the first edition of a book by a popular author in hard cover and not in paperback?
A) Hard cover books are long lasting and paperbacks can rip easily. B) Readers who want to read the book as soon as it comes out will be willing to pay a higher price compared to those who can wait for the paperback edition. C) A hardcover is the publishers' way of rewarding the avid readers. D) Publishers are not sure of the demand. E) Publishers cannot price discriminate.
Aggregate producer surplus in an industry can be measured along the market supply curve in the short run but not in the long run.
Answer the following statement true (T) or false (F)
An incentive compensation scheme includes
a. a performance evaluation system b. a disciplinary action committee c. a reward system d. A and C
According to the graph shown, if Q2 units are being produced, this monopolist:
This graph shows the cost and revenue curves faced by a monopoly.
A. is not maximizing profits.
B. is producing where marginal costs are less than marginal revenue.
C. is earning negative profits.
D. should increase production.