Why does the government allow some markets to be monopolized by granting patents?
a. to promote a more equal distribution of income
b. to correct for negative externalities
c. to promote technological progress
d. to ensure lower prices for consumers in the short run
Question 2
_____ gives the slope of an isocost line where labor (L) and capital (K) are the two inputs measured on the X and Y axes respectively.
a. The ratio of the marginal product of capital to the marginal product of labor, with a negative sign,
b. The ratio of price of labor to the price of capital, with a negative sign,
c. The ratio of the price of capital to the price of labor
d. The ratio of the marginal product of labor to the marginal product of capital
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