Which of the Following Goods Does a Patent Turn a New

question 81

Multiple Choice

Which of the following goods does a patent turn a new idea into?

• A) a public good, which increases the incentive to engage in research
• B) a public good, which decreases the incentive to engage in research
• C) a private good, which increases the incentive to engage in research
• D) a private good, which decreases the incentive to engage in research

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Definitions:

Marginal Revenue

The revenue increase from selling one more unit of a product or service.

Marginal Cost

The increase or decrease in the total production cost when the production level is increased by one additional unit.

MR = MC Rule

An economic principle that states a firm will maximize its profit when its marginal revenue equals its marginal cost.

Additional Unit

Refers to the next unit of a good or service to be produced or consumed, often discussed in the context of marginal analyses, such as marginal cost or marginal utility.