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 62 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 :)

isabelt_18

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

Early cities were small economic centers surrounded by walls to keep out enemies. These cities had ... Early cities were small economic centers surrounded by walls to keep out enemies. These cities had ...
Economic and Social Development Economic and Social Development
Economic and Social Development Economic and Social Development
Global Economic Relationships Global Economic Relationships
economic question economic question
economic question economic question
Video: Medullary osmotic gradient: countercurrent multiplier, urea recycling & vasa recta countercurrent exchange

For a complete list of videos, visit our video library