Why are patents important to those who hold them

Assignment Help Microeconomics
Reference no: EM13190432

1. A monopolist: 

earns a profit in the short run and the long run.
earns a profit in the short run but not the long run.
can earn profits or incur losses in the short run.
can never incur losses.


2. Why are patents important to those who hold them? 
Without patents, there will no longer be economies of scale in production.
Patents act as a barrier to entry, allowing monopoly profits.
Without patents, there would be considerably more price discrimination in the market.
Patents actually do not matter because they do not guarantee that a firm will make a profit.


3. To maximize profits, a perfectly competitive firm should produce until: 
price is greater than average total cost.
marginal cost is equal to price.
average total cost is minimized.
per unit profits are maximized.


4. The profit-maximizing condition for a perfectly competitive firm is: 
MR = ATC.
MR = AVC.
P = MC.
P = AVC.

Reference no: EM13190432

Questions Cloud

Create a report exploring the stages : Create a report exploring the stages involved in a specific attack (of your choice) against a computing system.
Compute the standard deviation of the return : Assume that the economy can experience high growth, normal growth, or recession. You expect the following stock market returns for the coming year under these conditions. State Probability Return High Growth 0.2 +30%
How to obtain pure naphthoic acid from the mixture : Using active extraction (changing the polarity) and a gravity filtration to remove a component, describe how you would obtain pure naphthoic acid from this mixture.
Mechanism for bromobenzene and magnesium turnings : Mechanism for bromobenzene + magnesium turnings + annhydrous diethyl ether + benzaldehyde + H2SO4
Why are patents important to those who hold them : To maximize profits, a perfectly competitive firm should produce until:  price is greater than average total cost.marginal cost is equal to price. average total cost is minimized. per unit profits are maximized.
State automobile clocked by law-enforcement radar : Consider a 2710-lb automobile clocked by law-enforcement radar at a speed of 85.5 mph (miles/hour). If the position of the car is known to within 5.0 feet at the time of the measurement, what is the uncertainty in the velocity of the car? in mph
State a cylindrical container with a movable piston causes : A reaction inside a cylindrical container with a movable piston causes the volume to change from 14.0L to 21.0L while the pressure outside the container remains constant at 0.975 atm.
Are there economies of scope or scale : a critical analysis of the microeconomic and macroeconomic environment and challenges that the company faces. Include the company background, industry, and industry structure. What is the industry Financial Computer What is the industry structu..
Compute the concentrations of all species : Calculate the concentrations of all species in a 1.75 M Na2SO3 (sodium sulfite) solution. The ionization constants for sulfurous acid are Ka1 = 1.4× 10-2 and Ka2 = 6.3× 10-8.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  How to reduce strategic underbidding

If some auction participants for crude oil field leases have estimates that the oil in the ground is worth $1.2 million, $1.3 million, or $1.5 million with certainty; and other auction participants have estimates that the same oil f..

  Why cant individual firm raise its price by reducing output

Do you agree or disagree with the statement that: "A monopolist always charges the highest possible price."? Explain. b.) Why can't an individual firm raise its price by reducing output or lower its price to increase sales volume in a purely com..

  Positive and negative externalities

Externalities are 3rd-party consequence of some other action. They can be positive or negative externalities and they impose a benefit or cost to a 3rd-party.

  How should the firm allocate production

The firm faces a constant marginal revenue curve given by:MR = 200 and how should the firm allocate production?-How much should Factory #1 produce and how much should factory #2 produce?

  Determine the possible relative market shares

Determine to the extent possible the relative market shares of these firms. Discuss the degree of concentration in the industry using CR4, other n-firm concentration ratios, H-H indices, etc.

  Find the depreciation rate and population growth

A country is described by the Solow Model with a production function y = k1/2 where y is output per worker and k is capital per worker. Now suppose that the fraction of output invested (or saved) is 50%.

  Why governments intervene in markets with price floor

This is a self-reflection paper developed based on the classroom discussion around minimum wage. Explain the effect minimum wage has on the economy. List and describe both the pros and cons of the more recent increases in the federal minimum wage...

  Determining appropriate bid price

Guthrie Enterprises needs someone to supply it with 230,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract.

  Find profit-maximizing average monthly production capacity

Determine the profit-maximizing average monthly production capacity for DermaPlus for each of the possible reference-based prices identified by the consultant. Estimate the expected monthly profit in each case.

  Explain market demand and market supply

In a competitive market, the market demand is Qd = 400 - 5P and the market supply is Qs = 10P - 80. A price ceiling of $32 will result in a. a shortage of 80 units b. a shortage of 44 units

  Define govt. attempts to prohibit monopolization of a market

general electric which produces light bulbs, jet engines, washing machines, and so on, kinko's which has a photocopy store near many colleges and univesities, usx corporation which owns ore and coal mines, coke ovens, blast furnaces, mills, and foun..

  How a monopoly firm is different from a competitive firm

Because their countries have similar institutions, the price paid for a computer in Germany and the United States are about the same when converted into the same currency. 15) The fact that U.S. managers' salaries are substantially greater than tho..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd