This topic contains a solution. Click here to go to the answer

Author Question: A patent gives a firm a monopoly in the production of the patented good. While monopoly profits ... (Read 168 times)

Mimi

  • Hero Member
  • *****
  • Posts: 542
A patent gives a firm a monopoly in the production of the patented good. While monopoly profits provide an incentive for firms to innovate, the monopoly power imposes a cost on consumers. Why do consumers bear a cost from that monopoly? Is the cost to consumers greater than the profits earned by the monopolist?

Question 2

The annual membership fees of the 185 member countries of the IMF are called:
 a. annuities.
  b. quotas.
  c. vetos.
  d. conditionalities.
  e. petrodollars.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kardosa007

  • Sr. Member
  • ****
  • Posts: 300
Answer to Question 1

Consumers bear a cost because monopolists produce less output and charge a higher price than in a competitive industry. There is a resulting loss of consumer surplus. However, only part of this loss is transferred to the monopolist in the form of profit.

Answer to Question 2

b




Mimi

  • Member
  • Posts: 542
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


tkempin

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

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

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

For a complete list of videos, visit our video library