« previous next »

Author Question: Why does a patent stimulate research? A) Patents give firms time to do research. B) Patents give ... (Read 43 times)

Mr. Wonderful

  • Hero Member
  • *****
  • Posts: 866
on: Jul 1, 2018
Why does a patent stimulate research?
 
  A) Patents give firms time to do research.
  B) Patents give firms the opportunity to recover research costs and thus serve as a profit motive.
  C) Without patents, firms would not research as much.
  D) They don't.

Question 2

If a firm cannot earn profits in the short run, it will shut down.
 
  Indicate whether the statement is true or false
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


IAPPLET

  • Sr. Member
  • ****
  • Posts: 333
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

False. A firm will operate at a loss if the loss incurred from production is less than the loss incurred from shutting down. Even if the firm shuts down, it still must pay its fixed costs because, in the short-run, going out of business is not an option.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

One of the rats in the research reported on BioFoods. One of the rats in the research reported on BioFoods.
The injector on-time is called the pulse width. The injector on-time is called the pulse width.
How to solve a distance, time, speed problem using linear algebra How to solve a distance, time, speed problem using linear algebra
Popular Methods of Conducting Social Science Research Popular Methods of Conducting Social Science Research
Research Research
The time at which the mailman delivers the mail to Ace Bike Shop follows a normal distribution ... The time at which the mailman delivers the mail to Ace Bike Shop follows a normal distribution ...
Video: Isovolumetric VC, Ventricular ejection, Isovolumetric & Passive ventricular filling

For a complete list of videos, visit our video library