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 46 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
Excellent

bdobbins

  • Member
  • Posts: 326
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

How to reduce simple ratios How to reduce simple ratios
economic question economic question
economic question economic question
economic question economic question
economic question economic question
Regulation of Bacteriophage Entry into the Lytic or Lysogenic Cycle Regulation of Bacteriophage Entry into the Lytic or Lysogenic Cycle
Video: Chemical Synapse Animation

For a complete list of videos, visit our video library