When a pharmaceutical firm spends millions of dollars to lobby and convince Congress to extend the number of years a firm is awarded patent protection, then the pharmaceutical firm is engaging in:
A. rent seeking.
B. fraud.
C. price discrimination.
D. marginal cost pricing.
Answer: A
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Suppose the marginal benefit the owner of a cherry orchard derives from hiring Lauren to pick cherries is $8 per hour. If the wage rate that Lauren earns is $7 per hour, then the orchard owner's surplus from Lauren's labor is ________ per hour
A) $7 B) $15 C) $1 D) $8 E) $0
If the Kyoto Protocol requires developed countries to reduce emissions of greenhouse gases, but developing countries are not required to do so, why might a developed country still agree? Should it?
What will be an ideal response?
During the 1990s, which of the following did NOT occur?
A) Private savings fell. B) Investment rose. C) Public savings increased. D) The United States received capital inflows. E) Private savings was greater than investment for most of the 1990s.
An increase in productivity as a result of a new technology would cause the production possibilities frontier to:
A. shift in. B. shift out. C. not move until society chooses to move it. D. become more meaningful in policy decisions.