A Patent

question 19

Multiple Choice

A patent:

• A)specifies the term of exchange,facilitating exchange between strangers.
• B)increases the profitability of inventions,encouraging firms to develop new products.
• C)provides the public with reliable information about the performance of a firm.
• D)increases the risk faced by entrepreneurs.

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Definitions:

Equilibrium Quantity

The amount of goods or services available that matches the amount desired by consumers at the price where supply and demand balance.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Tax Imposition

The act of placing a financial charge or levy upon a taxpayer by a governmental organization.

Buyers

Individuals or entities that purchase goods or services from sellers in exchange for money or other valuable considerations.