This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: From an economic standpoint, patents reduce efficiency because they serve as a barrier to entry and ... (Read 43 times)

jCorn1234

  • Hero Member
  • *****
  • Posts: 545
on: Jun 29, 2018
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?

Question 2

Harry's Hookahs incurs 700,000 per year in explicit costs and 500,000 in implicit costs. The company earns 1.4 million in revenues and has 3.7 million in net worth. Based on this information, what is the economic profit for Harry's Hookas?
 
  A) 200,000 B) 700,000 C) 900,000 D) 1.1 million


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

gstein359

  • Sr. Member
  • ****
  • Posts: 293
Reply #1 on: Jun 29, 2018
Answer to Question 1

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.

Answer to Question 2

A


jCorn1234

  • Member
  • Posts: 545
Reply 2 on: Jun 29, 2018
:D TYSM

dyrone

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Tracking time of marker entry generates a chromosome map Tracking time of marker entry generates a chromosome map
Dopamine cannot cross the blood–brain barrier. Levodopa, its precursor, can. Once levodopa crosses ... Dopamine cannot cross the blood–brain barrier. Levodopa, its precursor, can. Once levodopa crosses ...
Recent research suggests that zinc lozenges and nasal gels may help reduce the severity Recent research suggests that zinc lozenges and nasal gels may help reduce the severity
Production efficiency vs. trophic efficiency Production efficiency vs. trophic efficiency
economic question economic question
economic question economic question
Video: Lactation and Breast Feeding

For a complete list of videos, visit our video library