Author Question: A patent A) always gives rise to a monopoly. B) may not provide a barrier to entry. C) allows ... (Read 45 times)

JGIBBSON · **on:** Jul 1, 2018

A patent

A) always gives rise to a monopoly.
B) may not provide a barrier to entry.
C) allows the patent owner to capture all of the consumer surplus.
D) increases total welfare.

Question 2

Fixed costs

A) are always sunk.
B) are avoidable.
C) are sometimes sunk.
D) sunk in the short run, but not in the long run.