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

Author Question: Patents provide a firm with a monopoly on a given product. What is the economic rationale for ... (Read 26 times)

saliriagwu

  • Hero Member
  • *****
  • Posts: 537
on: Jun 29, 2018
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?

Question 2

In an unregulated competitive market, the presence of marginal external cost of a good or service results in overproduction.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

frogdreck123456

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 29, 2018
Answer to Question 1

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.

Answer to Question 2

TRUE


saliriagwu

  • Member
  • Posts: 537
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Websites that Provide Reliable Health Information Websites that Provide Reliable Health Information
Greet a First-Time Client With a Firm Handshake. Greet a First-Time Client With a Firm Handshake.
U.S. Patents and Patents per Million Residents, 2010 U.S. Patents and Patents per Million Residents, 2010
economic question economic question
economic question economic question
economic question economic question
Video: Blood Pressure Measurement

For a complete list of videos, visit our video library