Patent Laws

question 113

Multiple Choice

Patent laws

• A)reduce incentive to innovate by restricting market entry
• B)reduce incentive to innovate by making it difficult to use the patented innovation
• C)increase incentive to innovate by restricting entry into a market
• D)increase incentive to innovate by giving a firm permanent and exclusive production rights
• E)give a firm the right to provide a wide variety of goods or services

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Definitions:

Financial Advantage

The benefit gained from making a financially prudent decision that leads to wealth accumulation, cost savings, or any other monetary gain.

Dropping Product

The decision to discontinue the production and sale of a product line or item, typically due to it not meeting financial or strategic goals.

Contribution Margin

The amount remaining from sales revenues after all variable expenses are paid, contributing towards covering fixed costs and profit.

Discontinue

To stop making or providing a product or service, often as a strategic decision by a company.