The Demand Curve Faced by a Firm with a Patent

question 141

Multiple Choice

The demand curve faced by a firm with a patent on a marketable product

• A)is horizontal
• B)is vertical
• C)slopes upward
• D)slopes downward
• E)is nonexistent

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Definitions:

Cournot Oligopolist

A firm competing in a market where a few firms control the majority of the market share and where each firm takes into account its rivals' production quantities when determining its own quantity.

Cournot Equilibrium

A concept in economic theory where firms reach a state in which each firm chooses the optimal output level assuming the output levels of the other firms.

Duopoly

A market structure characterized by two producers/sellers in competition with each other.

Constant Costs

Costs that remain unchanged regardless of the level of output or activity within a certain range.