Define importance of patents to the economic system

Assignment Help Microeconomics

Reference no: EM132201129

Question: 1) Your professor discussed the benefits of the perfectly competitive market. Among these was profit maximization, productive and consumptive efficiency. Still more benefits of the PC model pertain to individual choice and liberty. What historical paradox of social structure does the perfectly competitive equilibrium resolve?

2) Provide one example of a transaction cost.

3) In the long run equilibrium of the perfectly competitive market all firms produce at the minimum of their average cost curve. What is economic profit at this point?

4) Describe in your own words the importance of patents to the economic system.

5) Discuss the notion that greed is good in the context of a perfectly competitive market and in that of a monopoly. How must greed manifest itself in a perfectly competitive market in long run equilibrium.

6) Using the following equations set up the Cournot profit function for firm 1. And solve for the Nash equilibrium quantity of firm 1.

Demand P (q) = 100-2Q

Total Costs C(q) = 20q

Reference no: EM132201129

Questions Cloud

How many episodes should you watch the week : There are 50 episodes of a new TV show on Netflix that you want to watch before they expire at the end of next week. You are trying to decide how many episodes.

Find the critical value for data and interpret the findings : The researchers find that the chi-square test statistic for these data is 51.58. Find the critical value(s) for these data and interpret the findings.

Diagnosed with osteoarthritis or hypertension : What is the probability that a patient at this clinic has been diagnosed with osteoarthritis OR hypertension?

Write a java program to sort a list of integers : Generate the list randomly every time using the class. Allow the user to choose the size of the array.

Define importance of patents to the economic system : Describe in your own words the importance of patents to the economic system. Discuss the notion that greed is good in the context of a perfectly competitive.

Find the probability that a single student : Scores on Professor Combs' Statistics Final Exams have a long term history of being normally distributed, with a mean of µ = 72 and a standard deviation of s =

Find the mean of this probability distribution : When Alex leaves for school 50 minutes before his class starts, the probability he makes it to class on time is estimated to be 0.85

Make cause-and-effect relationships : A well design experiments allow us to make cause-and-effect relationships? What experimental design principles allow us to make cause and effect conclusions?

Consequence of not having enough statistical power : What is a likely consequence of not having enough statistical power? Explain.

User Account

All Pages