Patents provide a firm with a monopoly on a given product. What is the economic rationale for granting patents?
What will be an ideal response?
The rationale for patents is that without a patent, competitors could copy an innovation and drive the economic profit to zero. As a result, firms would have little incentive to innovate.
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If devaluation does not improve the BOT, but only the BOP, this implies that
A) the capital account is in deficit. B) the current account is in surplus. C) the improvement comes in the capital account. D) Both B and C.
Marginal cost is ____________
a. The revenue from selling an additional unit of output b. none of the above c. The total cost of production d. The cost of producing an additional unit of output
The gross domestic product of Solvasa, a small island country, is U.S. $68 billion. The adult population of the country is 8.70 million and 11.3 million citizens are below 18 years of age. The output per capita of Solvasa is approximately equal to _____
a. $7,800 b. $3,400 c. $6,017 d. $5,201 e. $6,950
In 1911, the Standard Oil Trust was ______.
a. bought by U.S. Steel b. broken up by the Sherman Antitrust Act c. merged with the American Tobacco Company d. seized by the government under the Clayton Act